Oil prices surged ahead of the scheduled end of the US/Iran ceasefire. Key negotiations are not ongoing, in the physical sense, but may be happening via an intermediary. Rhetoric coming from Iran is not positive and markets are feeling nervous. Equities are off record highs and the US Dollar regained some ground, as a safety play. The EUR retreated back to 1.1730, while the GBP surrendered 1.3500. The important German/EU ZEW Economic Sentiment report collapsed, as was to be expected.
NZ Business Confidence also collapsed, largely driven by the energy crises, emanating from the Middle East war. NZ Q1 inflation was also released yesterday and reflected a spike in inflation expectations, with the CPI coming in at 3.1%. The NZD fell back below 0.5900, while the AUD drifted below 0.7150. All eyes remain on the Middle East.
