Dollar up on Mideast angst and safe-haven flows, Oil cools after spike – Fed today won’t go unnoticed

Frank Walbaum FX Strategies.Asia

Important news for the day

Fri., 20th, 08:00 CET UK retail Sales

Iran conflict

Financial markets see some risk- averse moves for various reasons. While the conflict between Israel and Iran continues to remain the top story markets continue to trade in a sideways pattern.
Despite having sent troops to the region, current action by US President Trump might signal a delay in further intervention. Negotiations between the US and Iran might offer more clarity here and could also help stabilizing markets early next week. Iran’s foreign minister will meet with his British, French and German counterparts in Geneva today. Furthermore the growing momentum of the Greenback might also harm equities causing a correction to happen.

Market talk

Equities might resume trading on a weaker note after the US bank holiday yesterday. Gold prices seem to be affected by renewed strength of the Dollar while also Oil is heading lower. With the strong bearish candlestick pattern based on the weekly chart, more downside momentum might occur. Bitcoin and Ethereum among other tokens look set to weaken, too. Meanwhile under the French leadership the Euro is being promoted as a global reserve currency. The common currency, which faced severe setbacks several years ago in particular with the debt burden of Southern countries like Greece might now indeed gear up fresh momentum.

Tendencies in the markets

Equities weaker, USD stronger, Bitcoin weaker, ETH weaker, oil positive, Silver weaker, Gold weaker, JPY weak.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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