Forex Today: oil production disruption spurred risk aversion
|Here is what you need to know on Tuesday, September 17th:
- The EUR/USD pair settled around 1.1000, pressured by news that the World Trade Organization ruled in favor of the US in the case of illegal subsidies granted to European aerospace Airbus. Fears are that the US will now impose punitive tariffs to EU products for as much as $21billion.
- In the Brexit front, UK PM Boris Johnson met with his Luxembourg counterpart, Xavier Bettel, later skipping the press conference. Better was left alone, and criticized Johnson for failing to clarify what he wanted from Brexit. He then reiterated that the European Union won't give the UK another Brexit extension "just for the sake of another extension," and that the Withdrawal deal signed by former PM May is so far the only solution possible.
- Safe-havens gapped higher at the weekly opening following oil-related news, later easing in an uneven way. USD/JPY trimmed daily losses, Gold retained some modest gains.
- Crude oil prices surged to their highest in 4 months after the weekend drone attacks that disrupted 50% of Arabian oil production. Risk aversion triggered by the attack prevailed throughout the day.
- US President Trump indicated that the US is ready to respond to the attack in Saudi Arabia, blamed Iran to be behind it.
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