Trump sends Pompeo to Riyadh to address King Salman on missing journalist - Reuters

Joshua Gibson FXStreet

As reported by Reuters, US President Donald Trump has sent US State Secretary Mike Pompeo to Saudi Arabia to meet with King Salman regarding the details of the missing journalist.

Key highlights

President Trump, in an oddly diplomatic and measured response to the possible slaying of a US resident in the Saudi embassy in Turkey, floated the idea of "rogue killers" being responsible for the death/disappearance of Saudi journalist Jamal Khashoggi, even as it is being reported that Saudi Arabia, who initially denied any knowledge or involvement in Khashoggi's disappearance, is preparing to blame the journalist's death on a 'botched interrogation'.

President Trump has been striving to carefully cultivate a positive relationship with Saudi Arabia during his tenure as US president, and the Saudi kingdom's frequent appearance on headlines and media outlets for blatant human rights violations and acts of outright suppression are wreaking havoc on Trump's efforts to "buddy up" with the Saudi king.

Western countries have begun to flash political warning signs that they will begin to take action on Saudi Arabia regarding its crushing stance on activists and dissidents, with major firms and corporations abandoning major plans as the Saudi kingdom becomes demonized in the mainstream media, and Saudi Arabia's stance has been to double down, threatening swift economic action against the US, including intentionally constraining oil production in an effort to further drive up oil prices, should the White House make any moves to punish Saudi Arabia.

A pro-government Turkish daily published preliminary evidence last week from investigators who it said had identified a 15-member Saudi intelligence team that arrived in Istanbul on diplomatic passports hours before Khashoggi disappeared. Saudi Arabia has responded to Western statements by saying it would retaliate against any pressure or economic sanctions “with greater action,” and Arab allies rallied to support it. - Reuters

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD seems fragile below 1.1700 as Middle East war boosts energy prices

The EUR/USD pair trades flat at around 1.1680 during the Asian trading session on Tuesday, but broadly seems vulnerable, being close to its five-week low. The major currency pair is under pressure as surging oil prices due to the United States-Israel war with Iran have increased the risks of higher inflation for the Old Continent.

GBP/USD hovers around 1.3400 with bearish pressure intact

GBP/USD edges higher after three days of losses, trading around 1.3400 during the Asian hours on Tuesday. The technical analysis of the daily chart indicates an ongoing bearish bias, as the pair trades within a descending channel pattern.

Gold sticks to gains above $5,350 amid sustained safe-haven demand; firmer USD caps gains

Gold sticks to its positive bias for the third straight day and trades above the $5,350 level heading into the European session on Tuesday. Concerns about a broader regional conflict in the Middle East continue to weigh on investors' sentiment and underpin demand for the traditional safe-haven bullion.

Stellar risks deeper losses as derivatives metrics turn negative

Stellar is trading red below $0.16 at the time of writing on Tuesday, after a slight recovery the previous day. Weakening derivatives data caps the recovery, while an unfavorable technical outlook projects a deeper correction for the XLM token in the upcoming days.

The market is not panicking it is repricing the probability distribution of Oil and time

At the end of the day, markets do not trade morality or geopolitics. They trade transmission channels. And the only channel that truly matters in this maelstrom runs through the price of energy and the time value of money.

Hyperliquid Price Forecast: HYPE rises on commodities demand amid US-Iran war

Hyperliquid (HYPE) steadies above $33 at press time on Tuesday, marking its fourth consecutive day of recovery in a broadly volatile market due to the ongoing US-Israel strikes on Iran.