Trump extended the ceasefire, opening the door for negotiations to recommence, but the Iranians do not seem to be interested. They have refused further negotiations, under the shadow of threats, calling for the US blockade to be lifted. They escalated further by seizing two ships in and around the Strait of Hormuz. European economic forecasts and data are reflecting the energy realities, with the UK forecasting inflation to top 4%, while the Germans are expecting inflation to hit 2.7%. A prolonged stalemate is only exasperating the situation, and the ceasefire could turn kinetic at any time. The US Dollar was steady, with the EUR trading around 1.1700, while the GBP looks to hold 1.3500.Commodity currencies were stable, with the AUD holding above 0.7150, while the NZD quietly crept back above 0.5900. Inflation will drive up cost-of-living pressures and the consumer will suffer, in Countries suffering crushing energy prices.
