Tensions in the Middle East simmered overnight, with the US National Security team considering the latest offer from the Iranians. This offer would open the Strait of Hormuz, but would not address other key US concerns. Equity markets across Asia, Europe and the US were in a state of flux, awaiting any developments. Bond yields are creeping higher, especially in the UK, where the 10-year Gilt, crossed the key psychological level of 5%. Markets also await the latest inflation readings from Germany, which will reflect the current energy crises. The US Dollar was steady, with the EUR holding above 1.1700, while the GBP drifted back to 1.3500.Commodity currencies held their ground, with the AUD approaching 0.7200, while the NZD struggles to regain 0.5900. The latest reading on inflation from Australia will be released today and is expected to spike substantially higher. This will put added pressure on the RBA to raise interest rates, as the fiscal pressures, only add to the Central Bank nightmares.
