Oil prices spiked back to US$95/barrel, despite rumours swirling that a phased in peace agreement between Iran and the US, may result in the Straits of Hormuz reopening. Negotiations have been underway all week, at the UN, and it seems progress has been made. Equity markets remained negative, while bond yields, remain at dangerously hight levels. The US 30-year bond hit highs, not seen since 2004, raising fears of further rate rises from the Fed. The US Dollar remained a safety play, with the EUR slumping to 1.1365, while the GBP looks to test the downside of 1.3200.Commodity currencies suffered accordingly, with the AUD crashing towards 0.7000, while the NZD tumbled to 0.5650. The Australian Unemployment rate jumped to a post-COVID high of 4.6%, screaming for some interest rate relief, but with inflation running hot, this is unlikely. Attention remains firmly on the Middle East and energy supply.
