Global Bourses Dip As Trump Wages Sanctions War on Iran [Video]

Frank Walbaum FX Strategies.Asia

European bourses opened in the red on Tuesday morning after recording a bearish close yesterday on news that the U.S. imposed sanctions on Iran over the shooting down of an unmanned American drone last week.

President Donald Trump may have put off a military strike on Iran last week, but he did not hesitate to impose some highly restrictive sanctions on Iran late Monday. These “hard hitting” sanctions will deny Iranian Supreme Leader Ayatollah Ali Khamenei and his office access to key financial resources, according to an NBC News report. US bourses are also seen opening in the red today with market focus being largely attuned to the U.S. central bank, with Fed Chair Powell due to speak later today.

Forex Preview: Dollar Extends Losses

The dollar hit a multi-month low against the euro and the yen on Tuesday on the prospects of monetary easing by the Federal Reserve while safe haven currencies such as the Japanese Yen appreciated on increasing Middle East tensions. The USDCHF plummeted yesterday after weaker-than-expected Dallas Fed activity and we have seen some profit taking this morning. Elsewhere, the pound has recovered some of its previous losses this morning as the race to replace U.K. Prime Minister Theresa May nears an end . The GBP pair could continue to see some upside today with Boris Johnson the overwhelming favourite to become the next UK PM.

Oil Prices Lose Steam But More Bulls be Coming

Oil prices traded somewhat lower this morning as concerns over the outlook for crude demand weighed, however prices could break higher later in the day as investors monitor the latest developments with the promised US sanctions on Iran. Meanwhile a tentative OPEC meeting is on today’s agenda with market participants hoping for another output cut announcement for next week. The prospect of fresh cuts could also boost oil prices later today.

Gold Prices Add 1%, BTC Reigns Above $11K

Gold prices profited by the fresh risk-off wave this morning amid simmering Middle East tensions with XAU/USD last seen trading 1% higher, near six-year highs at $1432.85 as of 8:52 GMT. Alternative “safe haven” bitcoin rallied above $11,000 through the weekend, nearing a 15-month high. BTC/USD is now reigning the $11K range with BTC/USD last seen trading at $11305 as of 8:55 GMT this morning.

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.

EUR/USD struggles near 1.1850, with all eyes on US CPI data

EUR/USD holds losses while keeping its range near 1.1850 in European trading on Friday. A broadly cautious market environment paired with a steady US Dollar undermines the pair ahead of the critical US CPI data. Meanwhile, the Eurozone Q4 GDP second estimate has little to no impact on the Euro.

GBP/USD recovers above 1.3600, awaits US CPI for fresh impetus

GBP/USD recovers some ground above 1.3600 in the European session on Friday, though it lacks bullish conviction. The US Dollar remains supported amid a softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold remains below $5,000 as US inflation report looms

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains in the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.

US CPI data set to show modest inflation cooling as markets price in a more hawkish Fed

The US Bureau of Labor Statistics will publish January’s Consumer Price Index data on Friday, delayed by the brief and partial United States government shutdown. The report is expected to show that inflationary pressures eased modestly but also remained above the Federal Reserve’s 2% target.

The weekender: When software turns the blade on itself

Autonomous AI does not just threaten trucking companies and call centers. It challenges the cognitive toll booths that legacy software has charged for decades. This is not a forecast. No one truly knows the end state of AI.

Solana Price Forecast: Mixed market sentiment caps recovery

Solana (SOL) is trading at $79 as of Friday, following a correction of over 9% so far this week. On-chain and derivatives data indicates mixed sentiment among traders, further limiting the chances of a price recovery.