US vs Iran a reason for rising Oil prices?
Important news for the day
- Tue, 13th, 11:00 CET UK BoE Gov Bailey speech.
- Tue, 13th, 14:30 CET US Core consumer price index.
Risk sentiment
Stock markets continue to push higher amind positive risk sentiment. The recent strength of the Dollar can mostly be observed against the EUR, which the GBP and AUD keep pushing higher against the Greenback. The S&P 500 index as well as the NASDAQ have both regained recent losses. Also the German DAX keeps pushing higher and has created a new all- time- high. The crypto space keeps lagging behind with no signs of momentum. Instead, markets remain in a sideways pattern, with a potential breakout in the making.
Market momentum
US President Trump is planning to implement tariffs on countries, who deal with Iran. A fine, which obviously will be paid by the population might further harm the economic development and competitiveness of the United States. Furthermore Trump stated earlier this year, that he will support peaceful protests in Iran. Until now, several hundred protesters have been killed by the government, which might cause the US administration to act. Whether a military coup will be done remains unclear but the accusations go directly to the Iranian leader Ali Khamenei. Oil prices react in the meantime and growing uncertainty causes them to rise. WTI has broken higher and is currently testing the USD 60.00 resistance zone. A breakabove that level might indicate a further rise in prices.
Tendencies in the markets
- Equities positive, USD stronger, crypto sideways, oil positive, Silver positive, Gold strong.
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.
