Uncertainty and fear permeated markets again overnight, with the US declaring that peace negotiations are underway, while the Iranians completely reject that scenario. Trump announced peace talks, while Iranian officials completely denied this and continued military attacks on the US and their Allies, in the Middle East. This drove markets into further decline, with equities heading south and bond yields on the rise. The US Dollar again attracted safety flows, with the EUR sliding below 1.1550, while the GBP headed back towards 1.3300.Commodities suffered the fears of a global recession and the associated currencies were punished. The rise in the reserve forced the NZD back to 0.5770, while the AUD tests the downside of 0.6900. The focus remains the Middle East.
