Shares in Asia Pacific closed mixed on Friday, as oil prices rose following attacks on two tanker ships in the Gulf of Oman on Thursday. Meanwhile, European stocks started the day lower as the world focused on increasing Middle-East tensions with some claiming that the drums of war are loud and clear. Yesterday's attack on 2 oil tankers was officially blamed on Iran by Pompeo out of the US, which has fuelled global tensions even more. U.K. shares, noted steep losses this morning as Brexiteer Boris Johnson landed a convincing victory in the first round of voting for the Conservative party leadership.

US/China Trade Tensions Deepen

US National Economic Council Director Kudlow, stated that China broke the WTO trade law and that the POTUS will act on it, which deepens US/China tensions even further. Kudlow also stated that President Donald Trump could take further action against China if President Xi Jinping doesn’t agree to a meeting at the Group of 20 summit of leading economies in Japan later this month.

Retail Sales Data in Focus

All eyes will be on this afternoon's Retail Sales out of the US; weaker than expected readings could be bullish for US stock markets as they will support expectations of the Fed needing to cut rates. Core retail sales in May is expected to have jumped 0.5%, according to market consensus.

Forex Preview: Dollar Higher

The greenback remained largely supported on the rising Middle East tensions and the outlook of a possible US war with Iran. The EUR/USD pushed lower as rumours of an Italexit and the making of a new Italian currency persisted. The GBP/USD is also in the red but seems to find its bottom close to but still below the important $1.27 mark, ahead of the BoE governor Carney's speech later this afternoon.

GBPUSD

 

Oil Steadies, Gold Higher, BTC Flat

Elsewhere, gold prices advanced this morning, moving closer to their 14-month high hit last week, as trade and political turmoils, along with U.S. rate cut expectations propped up demand. The rise of the noble metal also indicated that the broader risk-OFF tone is not to be overlooked in the midst of a still high standing stock market and Fed rate cut prospects - which could also be mere fantasies. Oil prices corrected lower this morning after noting sharp gains following attacks on two oil tankers in the Gulf of Oman that stoked concerns of reduced crude flows through one of the world's key shipping routes. BTC remains solid within the 8k range and could be looking to become a proxy tool in this whole trade war and might actually gain from it.

 

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.

Feed news

Latest Forex Analysis

Editors’ Picks

EUR/USD below 1.1200 on Draghi's dovishness, amid Trump-Xi meeting announcement

EUR/USD is trading below 1.1200 after ECB President Draghi opened the door to rate cuts. Presidents Trump and Xi will hold an extended meeting at the G-20 Summit. The news cheered markets.

EUR/USD News

GBP/USD holds on to gains around 1.2550 after Boris wins again

The second ballot for Tories' leadership has been complete. Boris Johnson ended first with 126 votes, followed by Jeremy Hunt, who got 46. Dominic Raab eliminated. Pound showed no reaction to the news.

GBP/USD News

USD/JPY rallies beyond mid-108.00s on Trump's positive comments

Trump said he will have an extended meeting with the Chinese President next week. This comes on the back of Draghi's dovish comments and triggers risk-on trade. Fading safe-haven demand weighs heavily on the JPY and remained supportive.

USD/JPY News

Fed Preview: Proto-easing

Fed Funds 2.25%-2.50% target range predicted to be unchanged. Market expecting confirmation of easing bias into the second half. FOMC statement wording, especially "patient" and the economic projections important.

Read more

Gold surges through $1350 level, back closer to 14-month tops

Gold built on its strong intraday positive momentum and spiked to fresh session tops, beyond the $1350 level during the early North-American session.

Gold News

Majors

Cryptocurrencies

Signatures