Collinsonfx Daily Market Commentary

The drone attack on Saudi oil fields, over the weekend, filled markets with fear until they re-opened. Prior to opening President Trump offered to open the 'Strategic Petroleum Reserve' thereby calming fears over oil supply issues. Oil prices did spike, but settled at US$ 62.81/barrel,  although the prospect of further upheaval in the Middle East remains highly probable. Retaliation and ongoing attacks, are both on the radar screen. The Dollar jumped and pushed the EUR back to 1.1000, while the GBP slipped back to 1.2425, reflecting rising risk in the markets.

The rising Dollar is reflecting market uncertainty and has impacted the trade exposed, commodity currencies. The AUD slipped back to 0.6865, while the NZD tests new lows, plunging back to 0.6340. The performance of the NZD is a combination of international pressures and weak domestic economic data. Geo-Political developments, the US/China trade war and Central Bank speculation/action all promise to drive markets in what could be an extremely volatile week.