Markets closed out a very volatile week on a positive note, with US equities booking solid gains and oil coming off recent highs. Tensions remain high in the Middle East, as President Trump threatens to escalate to levels, as yet not seen. War is a great business for the Military Industrial Complex, but not good for the man in the street, as the cost of war is worn by the taxpayer. It is a massive wealth transfer. Oil prices fell back below US$90/barrel, easing concerns of an energy crisis. The US Dollar remains bid, with the EUR trading around 1.1350, while the GBP holds above 1.3300.Commodity currencies stabilised, with the AUD attempting to regain 0.7000, while the NZD looks to push back to 0.5800. The coming week will be highlighted by Central Bank interest rate decisions, growth and inflation data. The Fed is expected to hold rates steady, as is the Bank of England and Japan, respectively. The assumption is the Middle East war is temporary, as is the threat of sustained inflationary pressures and an energy crisis.
