Forex Today: Oil and Gold shining on Iran-US tensions, stocks suffer, as busy week kicks off
|Here is what you need to know on Monday, January 6:
Mid-East tensions: President Donald Trump threatened to hit Iran hard and disproportionately if it retaliates for the killing of Qassem Suleimani on Friday. Tehran announced it abandons any limits related to the nuclear deal. The Iraqi parliament has called on the exit of American troops from the country.
Gold prices have shot above $1,580 while oil prices remain bid, with WTI nearing $65. The US dollar is on the back foot against major pairs but gaining against commodity currencies.
Trade: China's delegation is set to land in the US on January 13 to sign the trade deal, according to the Chinese press.
Fed: John Williams, President of the New York branch of the Federal Reserve, said that low inflation is likely to stay for another five to ten years. Mario Draghi, former president of the European Central Bank, said that Europe is undergoing a process of "Japanification."
Data: Final services Purchasing Managers' Indexes in Europe are forecast to confirm moderate growth while the UK services PMI carries expectations for mild contraction.
A busy week awaits traders with a full buildup to the US Non-Farm Payrolls, euro-zone inflation figures, and more. Friday's US ISM Manufacturing PMI missed expectations with the worst score since 2009, adding to pressures.
Cryptocurrencies are gaining ground, with Bitcoin topping $7,500.
See US and Iran trade attacks in the Persian Gulf, markets fret about the future
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