Trading closed out the week on a positive note, following the Memorandum of Understanding signed between Iran and the US, allowing the Strait of Hormuz to reopen. Peace negotiations will now begin to ascertain if a lasting peace can be reached. Market attention will turn to more mundane matters, such as global growth, inflation and deficit/debt. Inflation will be the highlight in economic data releases this coming week, although recent spikes will be largely overlooked, chalked up to the Middle East war and the energy crises. The US Dollar remains strong, with the EUR trading above 1.1450, while the GBP struggles to hold 1.3200.
The stronger reserve has damaged the commodity currencies, with the AUD approaching 0.7000, while the NZD slumped below 0.5750. This coming week will look at Australian inflation and employment, while attention will turn to the record low levels of the Yen.
