The US/Iran conflict was paused again, before markets opened, for the trading week. Hostilities had erupted, once again over the weekend, as the US responded to Iranian attacks on shipping in the Straits of Hormuz. This is becoming extremely repetitive, with weekend violations taking us into a giant ‘Groundhog Day’. Equities rose following the reconstituted ceasefire, while the US Dollar and bond yields both eased. The EUR regained 1.1400, while the GBP traded around 1.3250.Commodity currencies experience no recovery, with the AUD trading below 0.6900, while the NZD hovers around 0.5650. The RBA released their latest minutes, which showed a unanimous hold, with a hawkish appetite holding firm. Growth and inflation will be closely followed for the remainder of the week, with a Geo-Political caveat.
