Yemen joined the war on the Iranians behalf, over the weekend, launching missile attacks on Israel. This has been further escalation of the war and oil prices moved upwards accordingly to over US$100pb. The energy crises is a by-product of the war and is feeding though into global inflation. The latest CPI reading in Germany surged from 1.9% to 2.7%, and this will only intensify, the longer the war continues. People across Europe will be experiencing big price rises in food and services, as a direct result of the spike in energy prices. The US Dollar gained further ground, with the EUR falling to 1.1450, while the GBP slipped below 1.3200.The rise in the reserve hit commodity currencies, with the AUD crashing below 0.6850, while the NZD tests the downside of 0.5700. All eyes remain on the Middle East, but inflation concerns and the economic fallout will become more obvious, as rises hit economic data readings.
