President Trump announced a ceasefire, between Israel and Iran overnight, setting markets alight. Equities across the globe surged higher, while oil prices and the US Dollar, tumbled. Reports of a break in the ceasefire have been flying, but it appears a ceasefire has been reached, with a view to peace negotiations. Market sentiment sharply improved, despite the dampener, that has become known as ‘too slow Powell’. Federal Reserve Chairman Powell appeared before Congress, maintaining the line that he will keep his powder dry, until Trumps tariff strategy plays out. Inflation is benign and Powell is looking like a political animal, that may be, on the endangered list. The safety of the US Dollar was no longer sought, with the EUR breaking back above 1.1600, while the GBP powered through 1.3600.The unwanted reserve allowed the commodity currencies to recover some lost ground, with the AUD looking to regain 0.6500, while the NZD broke back above 0.6000. Markets will focus on the Fed Chairs Congressional appearance (over two days), unless war breaks out, once again in the Middle East.
