On Thursday, Donald Trump tweeted that Iran “made a big mistake” which caught everyone's attention. Overnight, reports surfaced that the US military was positioned to wage an actual war on Iran but the very last command to start shooting was not given by the POTUS. President Donald Trump appears to have abruptly called off the military strikes against Iran on Thursday night after previously approving the strikes in retaliation for Iran shooting down a US military drone. Market participants are now looking for clues as to why the attack was averted. On Thursday, risk markets took a little dent on the Iran news, but still, the S&P opened and closed at record highs, as Donald Trump loved to tweet about.
Stock Markets Correct Stocks in Asia were lower on Friday morning while the dollar was poised for a weekly loss against major currencies after the U.S. Federal Reserve joined global peers with plans to cut interest rates to support an ailing economic growth. EU bourses opened mostly in the green as the US/Iran crisis was averted at least for now, pushing a small risk-on wave onto the markets. A weaker USD also supported global stock markets.
Forex Preview: EUR Higher
The EUR/USD is currently just above the $1.13 mark on stronger-than-anticipated German and EU PMIs. Meanwhile, the dollar continued to weaken and given how much room the Fed has to lower rates it is quite logical that the USD currency could lose a lot in value while the EUR and JPY currency are likely to continue to edge higher they are already at 0% interest level. The sterling remained subdued after a very dovish BoE yesterday, which could indicate that politically the UK is developing back further away from a working solution which is not helpful for its economy and currency.
Oil Prices Edge Higher
Meanwhile, oil prices spiked early this morning but dipped later on profit taking to now trade about 0.3% higher as of 7:45 GMT. Tensions in the Middle East and hopes for a drop in U.S. interest rates, have kept oil prices supported today. It should be noted that oil prices are currently holding close to their best levels from where we could expect further gains.
Gold Dips, BTC Looks to 10K Mark
Spot gold went through the $1,400 even yesterday before it sharply corrected after the Iran strike was called off. Dips in gold could be very interesting given that there are a multitude of risk reasons in the markets that make a safe haven such as gold attractive. BTC was this week’s steady gainer and is currently marching toward the test of the 10k level. It appears that the bullish momentum continues to be in charge with bitcoin adding as much as 5% as of 7:45 GMT this morning.
I really do hope it will not bring us some really serious war with the country like Iran, cause you know they are 80 million country with nuclear weapons anyway. How do you think you really need to go about it ? But I love what is going with commodities and currencies.
Darkwarden posted: I really do hope it will not bring us some really serious war with the country like Iran, cause you know they are 80 million country with nuclear weapons anyway. How do you think you really need to go about it ? But I love what is going with commodities and currencies.
I think; the situation will be normal even right now there is no hype as like the last week!
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice.
Past performance is not indicative of future results.