The end of the week brings a bundle of economic releases in the US with inflation readings. With both inflation rate and CPI (consumer price index) being released, markets might be bracing for a large jump.

Israeli strikes on Lebanon throughout the course of yesterday have led to a rebound of more than 2% on Oil prices as there seem to be conflicting signals over whether Lebanon is covered under the ceasefire agreement.

Oil prices this morning have dropped almost 15%, after Donald Trump agreed a two-week ceasefire with Iran.

Oil prices have again climbed higher this morning after Donald Trump effectively dashed any hopes of ending the conflict in The Middle East, which has now reached its fifth week.

Oil prices have slipped from multi-year highs earlier this morning after US President Donald Trump stated that The US could withdraw completely from the conflict within the next two to three weeks, going even further to say that Iran doesn't have to make a deal.

The start of Tuesday’s session saw GBP decline to both USD and EUR. GBP/USD reached a four-month low, while GBP/EUR was close to a one month low, as the morning progressed, we have seen small recoveries.

UK Inflation held steady at 3% this morning to keep in line with projections, although it is expected that inflation will start to climb upwards again as this reading for February was taken before the beginning of the Middle Eastern conflict. 

Markets are currently navigating a complex “wait-and-see” period, as traders balance the surge in geopolitical headlines versus critical macroeconomic data.