Oil and dollar surge as Iran attack fears grow

Chris Beauchamp IG

Expectations of a US move against Iran have risen dramatically, prompting a rush to the dollar and surge for oil, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Oil price surge lifts Shell

Shell has rocketed higher today, adding 15 points to the FTSE 100 as expectations of a weekend strike on Iran cause a 4% bounce in oil prices. Evidence suggests the US will go for a major and extended campaign, which inevitably raises fears that Tehran will retaliate by closing the Hormuz straits and causing major dislocation in oil markets. Combined with this and yet more strength in metals, the news has meant that the FTSE 100 is an island of gains in an otherwise risk off session.

Microsoft miss sinks tech stocks

Microsoft’s rout has seen the shares fall to their lowest level since May, with the fall taking the valuation back to levels seen around the Liberation Day volatility. The earnings have sunk a rebound in the Nasdaq 100 that seemed to promise a rotation back into tech stocks, while precious metals are delivering a lesson in momentum for traders – what works one way can also work the other, as a rush to the dollar on Iran fears prompts a dramatic unwind in positioning.

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Chris Beauchamp

EUR/USD loses the grip, returns to the 1.1900 region

EUR/USD now comes under a sudden bout of selling pressure, slipping back to the area of two-day lows near 1.1900 the figure on Thursday. The pair’s daily pullback comes on the back of the continuation of the rebound in the US Dollar as investors evaluate the Fed’s interest rate decision and rising geopolitical concerns.

GBP/USD drops to two-day lows near 1.3750

GBP/USD faces some increasing selling pressure, building on Wednesday’s losses and revisiting the 1.3750 zone on Thursday. Cable’s decline to two-day lows comes in response to the marked advance in the Greenback while traders have started to shift their focus to next week’s BoE gathering.

Gold retreats from records, now what?

Gold accelerates its daily correction and retests the $5,100 region per troy ounce, turning negative for the day and fading the earlier bull run to all-time highs around $5,600. The precious metal’s steep sell-off comes on the back of the better tone in the Greenback and mixed US Treasury yields.

Bitcoin slides below $85,000 as US stocks sell off, Gold outperforms

Bitcoin (BTC) broke below $85,000 in the North American session on Thursday, dropping nearly 3% in the one-hour timeframe. The move has seen the largest crypto by market cap erase over 5% of its value within the past 24 hours, briefly reaching $84,400, its lowest level since December 1, according to Binance data.

Federal Reserve pauses, sees economy on firm footing

At its January meeting, the Federal Reserve kept the Fed Funds Target Range (FFTR) unchanged at 3.50%–3.75%, a decision that was fully in line with market expectations.

Solana Price Forecast: SOL approaches critical support as bearish outlook persists

Solana (SOL) is trading in the red, down 2% at press time on Thursday, aligning with the broader cryptocurrency market correction as the US Federal Reserve kept the interest rates unchanged on Wednesday.