Markets closed out the week on a gloomy note, as the war in the Middle East extends and escalates. Oil prices are beginning to feel the impact, spiking above US$80/barrel, hinting at another looming energy crises. If oil prices surge above US$100/barrel, then all costs and prices will rise globally, as will inflation. This will not be ignored by markets, equities and bonds will react negatively, as will currencies. The US must end this war with Iran, through negotiation or by force, but quickly. The US Dollar remained steady into the close of the week, with the EUR trading 1.1430, while the GBP sits around 1.3450.
Commodity currencies remain under pressure, with the AUD trading below 0.7000, while the NZD dipped below 0.5850. NZ and Australia are particularly vulnerable to another energy crises, as they have no control over their own oil supply. They have been left in this vulnerable position by globalist, ideological and trade obsessed Governments.
