Equity market opened the week operating around record highs, in both the US and Japan, despite the ongoing impasse in the Middle East. Iran has reportedly offered a new peace plan and the US will respond. Meanwhile German Consumer Confidence came in at over minus 33, completely broken, while markets await the avalanche of data coming down this week. Central Bank action kicks off with the Bank of Japan today, with no rate changes expected, although commentary will be bleak. Bond yields are creeping higher, with UK 10-year Gilts knocking on 5% door. This is a red flag. The EUR begins the week trading above 1.1700, while the GBP consolidates above 1.3500.The energy crises continue to harm the struggling commodity currencies, due to their dependence on processed/imported energy, with a total lack of domestic production. The NZD is looking to regain 0.5900, while the AUD pushes back towards 0.7200. Australian markets are looking closely at local inflation data, set to be released Wednesday, revealing a big spike and upward pressure on rates.
