The dollar traded higher versus majors as investors asses the impact of the US Iran conflict in the Middle East on global trade and FX markets. The move to safety on increase tensions will most likely favor the JPY and Gold first, however the US dollar is the second tier for “safety” if global equity markets will pullback aggressively from their elevated current levels. The dollar index closed at the 97 level yesterday, higher 50 basis points over the past week. EU and US equity markets traded a flat session then futures traded lower overnight on the Middle East tensions and investors are looking at a negative open this morning. Metals closed positive after another volatile session, Gold closed at $1,572 per ounce and at 6-year highs and Silver at $18.4 per ounce. Oil traded lower then spiked sharply higher overnight, trading at $63.2 per barrel this morning after spiking to over 65.5 per barrel overnight as news on Iran missile attacks in Iraq on a US base surfaced. Oil is expected to trade lower once the tension in the Middle East subsides, however volatility in the commodity is expected to stay high near term.
US ADP Employment change at 2:45 pm, Oil Inventories at 4:30 pm and US president Trump speech (TBA), are the important news on the agenda Wednesday. (all times GMT).
| Global Markets 24 hours wrap-up | ||||||
|---|---|---|---|---|---|---|
| Market | GBPUSD | USDJPY | EURJPY | EURUSD | GOLD | OIL |
| 7.1.20 | -0.36% | 0.16% | -0.31% | -0.44% | 0.24% | -0.9% |
| USDMXN | USDCHF | AUDUSD | AUDJPY | USDCAD | Silver | Nat Gas |
| 0.12% | 0.31% | -1.01% | -0.85% | 0.28% | 1.27% | 0.98% |
| Dollar Index | DAX | FTSE100 | CAC40 | EURSXX50 | NIKKEI225 | CSI300 |
| 0.34% | 0.76% | -0.02% | -0.02% | 0.18% | -1.57% | -1.15% |
| 1 YEAR | 22.43% | 10.38% | 25.96% | 23.05% | 14.85% | 34.93% |
| Swing report | ||||||
|---|---|---|---|---|---|---|
| TRADE | ENTRY PRICE | POSITION | OPEN PROFIT | DATE TRIGGERED | STOP LOSS | UPDATES |
| SILVER | 17.77 | 2000 | 448 | 30/12 | 17.99 | stopped out |
| AUDUSD | 6875 | 0.8 | 20 | 8/1 | 6900 | new position |
| OPEN PROFIT | $20 | |||||
Nasdaq futures traded lower overnight following the attack on US bases in Iraq.
The Australian dollar took a 1% dive versus majors following weak economic data as investors fear the worst for the Australian economy and the bush fire crisis.
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