Morning everyone.

USD/Oil/Rates open a bit firmer after the atrocious scenes in Gaza/Israel over the weekend. 

We have taken a look at the numbers from the last five instances of turmoil in the area:

1) Oil up 80% of the time

2) Yields up immediately in 80% of instances but calm down

3) USD mixed, but since the Oil/USD correlation has flipped a strong USD makes sense now 

We generally prefer not to trade/allocate on the back of short-term Geopolitical events, but our Political team will of course follow this situation closely over the next hours.

Chart 1: Oil tends to rally when Israel gets involved in Gaza