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 appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.