Daily Market Commentary 22nd April 2024

A fiery and volatile end to a week of turbulent trading. The Middle East appeared to be on the verge of eruption and then receded to calm. An attack on Iran, as a possible response to the Iranian attack on Israel, hit Friday. This was enough to enough to unsettle markets and markets went haywire, before calming, as the response appeared measured and may signal the end of the Iran/Israel escalation. This weekend will be tense and further escalation will only bring further disruption to markets this coming week. Inflation and growth will be in the spotlight this coming week, with GDP numbers coming out in the US, along with important PCE Inflation data. Australia will also release their latest CPI data, which is expected to show big falls, in headline inflation. The US Dollar remains bid, with the EUR trading 1.0650, while the GBP remains under pressure around 1.2370.

Commodity currencies suffered the Geo-Political crises emanating from the Middle East, with the AUD crashing to 0.6360 at one stage, while the NZD fell back to 0.5860. The Bank of Japan will meet, this coming week, to decide interest rates. The BoJ are expected to hold rates at zero, but there may be some action, as the Yen is trading at intervention levels around 154.50. The crisis in the Middle East is set to dominate another week’s trade on global markets. Keep an eye on Oil, Gold and the US Dollar.