Market enthusiasm for the Middle East ceasefire began to slide and attention turned to the Federal Reserve Chairman, appearing before Congress for the second day. Powell reiterated his apprehension about cutting rates, despite inflation tumbling, using the tariff policy as an excuse. Powell was criticised for his tardiness and castigated for the costs on the US economy. He was reminded that the POTUS appointed him, was unhappy with his performance and will replace him. Oil started to find an equilibrium, following the recent week of upheaval and the US Dollar continued to fade. The EUR hit 1.1650, while the GBP looks to regain 1.3650.Commodity currencies remain conflicted, with the reserve weakness, allowing some improvement. The lack of a trade agreement from either country, with the USA, remains a big problem. The NZD attempts to hold 0.6000, while the AUD clings to 0.6500, following very soft inflation data. The Australian CPI came in at 2.1%, down from 2.4%, which will all but ensure a rate cut coming up from the RBA.
