Markets Cautiously Higher as the Stakes Remain High on the Middle Eastern Front [Video]


Chart

Safe-haven currencies pulled back from their three-month high versus the dollar this morning but sentiment remained fragile due to the increasing worries about a possible armed conflict between the United States and Iran. Following the U.S. drone strike that killed Iran’s most prominent military commander, tensions in the Middle East are simmering with the US sending more troops to the region and denying the withdrawal of soldiers. 

 

Global Bourses Edge Higher

Meanwhile, risk appetite has come back to the table and markets in Asia followed with a fresh round of risk appetite with stock prices paring earlier losses as also the tensions around Iran have not further escalated for now.

 

Oil Prices Dip

Oil has retraced again, as the tensions still remain but crude continues to be produced in the region with no immediate threat of supply cuts. Prices surged during the previous two sessions, with Brent reaching its highest since September while WTI rose to the most since April

 

More Upside for Gold?

Gold prices steadied after a brief dip on profit-taking on the previous session’s near seven-year high. Gold has hit fresh highs this week and could climb further. Thought in overbought territory the precious metal has risen past major resistance last week with much more room to the upside. XAU/USD was last seen trading near the $1570 level and we could see a further push higher should we have any worrisome updates on the US/Iran front. 

 

Forex Focus: All Eyes on the GBP

Today, the UK parliament will return to work starting a three-day debate on Johnson's Brexit deal. The main task will be to find agreements and a trade deal with the EU, as the business sector has suffered over the past 3.5 year period. Any positive news could further spark demand in the GBP, which had traded lower over the recent weeks as a hard Brexit might still happen.

 

XRP Up 10%+ On a Fresh Crypto Rally

Cryptocurrencies continue to behave as safe-havens in times of uncertainty, or - in the least - an alternative investment route, with the US/Iran tensions seemingly creating another rally in digital currencies. Specifically, Ripple's XRP, currently the world's third-biggest cryptocurrency by market value, has suddenly soared—jumping by around 10% and prompting an uptick in most other major cryptocurrencies.

Get a thorough update on today's markets in my Morning Call Webinar for BDSwiss. You can join future webinars to watch me break down the markets live: 

 

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.8% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

The content of this material and/or any information provided by BDSwiss Holding PLC should not in any way be construed, either explicitly or implicitly, directly or indirectly, as investment advice, recommendation or suggestion of an investment strategy with respect to a financial instrument and it is not intended to provide a sufficient basis on which to make investment decisions, in any manner whatsoever. Any information, views or opinions presented in this material have been obtained or derived from sources believed by BDSwiss Research Department to be reliable, but BDSwiss makes no representation as to their accuracy or completeness. BDSwiss Holding PLC accepts no liability for loss arising from the use of this data and information. The data and information contained therein are for background purposes only and do not purport to be full or complete.

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD loses 1.1800 amid escalaing US-Sino tensions

EUR/USD dips sub-18 after the US reported an increase of 1.763 million jobs in July, better than estimated but pointing to a deceleration. Escalating Sino-American tensions are boosting the dollar and fiscal talks are eyed. 

EUR/USD News

GBP/USD resumes decline, weighed by UK concerns, US-China conflict

GBP/USD trades at fresh weekly lows below 1.3050 as the dollar got a sudden boost from mounting tensions between the world's two largest economies. UK Chancellor Rishi Sunak said the furlough scheme that is underpinning the economy cannot last forever.

GBP/USD News

XAU/USD drops $50 from record highs to the $2020 area

Gold prices are falling sharply on Friday, trading below $2040/oz at the moment. Earlier on Friday, the yellow metal reached at $2075, a new record high.

Gold News

Bitcoin may extend the recovery once Gold resumes the rally

Gold retreated from the recent highs, but the sentiments are still bullish. Cryptocurrencies resumed the upside, some altcoins are demonstrating strong gains. ETH/BTC stopped the downside correction and settled at $0.03300.

Read more

WTI extends slide toward $41, on track to post weekly gains

Crude oil prices continued to fall on Friday and the barrel of West Texas Intermediate (WTI) touched a daily low of $41.05 before recovering modestly.

Oil News

Forex Majors

Cryptocurrencies

Signatures