Topic: Weekly FX Report

Markets are swinging on mixed signals as conflict threatens energy flows. Oil surges, inflation risks rise, and FX shifts back to terms‑of‑trade with AUD leading despite volatility.

The Middle East conflict has sparked a global market shock, driving energy prices higher, freezing shipping routes, and lifting risk levels as investors brace for more volatility.

Markets wobbled as tariff uncertainty, geopolitical brinkmanship, AI‑driven tech angst and a muted reaction to Nvidia’s beat weighed on sentiment, while surging metals and a softer sterling added to a turbulent week.

Oil jumped on rising US‑Iran tensions, lifting the dollar as safe‑haven demand returned. A hawkish Fed, soft UK data and a dovish RBNZ reshaped rate expectations, while strong US growth kept investors favouring American assets.

Markets wobbled as an AI‑led tech selloff hit stocks, even as US jobs surged and inflation eased. Shifting Fed cut bets, USD uncertainty, and renewed yen and euro momentum added to a volatile week in global markets.

US tech slid as AI valuation doubts grew, dragging the Nasdaq ~4% WTD. With crypto and silver also falling, risk appetite looks fragile. The RBA hiked, lifting AUD, while a dovish BoE and UK politics weighed on gilts.