Risk maintains recoveries after Iranian rocket attack sparked morning sell-off
Risk holds fight back rallies after this mornings sell-off.
Late update trade traders, we wanted to wait and see how markets reacted to today’s recovery rallies after this morning flight to safety.
If you missed it, Iran fired dozens of rockets at an Iraqi Airbase, this base held U.S. soldiers. This re-sparked fears of war between the U.S. and Iran. The JPY jumped to the majors knocking them sharply lower. Gold also surged as we saw on Friday adding 2.15% to its high. Oil hit a 4% surge after the news hit the markets. Stocks were also affected the Dow futures dropping 1.47% to its low.
This looked like something big was going on, but like last week the selling faded, buyers got back into the markets sharply pulling back most losses on the AUD, EUR and US30. These fightbacks got going as new details hit the markets;
Iran says its not after war in a letter to the Un Sec General.
President Trump tweeted “All is well! Missiles launched from Iran at two military bases located in Iraq,” Trump tweeted. “Assessment of casualties & damages taking place now. So far, so good! We have the most powerful and well-equipped military anywhere in the world, by far! I will be making a statement tomorrow morning.”
These responses cooled nerves and took away some of the panic that the attacks caused. Since this Oil has dropped 3.15% since this morning open.
I admit when I watched this unfold off the back of Presidents Trumps comments, I was a touched worried that things were about to get a lot worse!!
At this stage, we’re seeing the AUD and GBP trading higher to the USD and the majors have all pulled back this morning’s losses to be trading flat or in positive territory to the Yen. The GBPJPY leading gains with a 47 pip rally.
European stocks have started the session mixed, the DAX and EURStoxx 50 are in the green while the CAC and FTSE hold small declines. Asian shares didn’t fair well with the Nikkei losing 1.57% and the Hang Seng dropping 0.89%
Tonight news-wise we have;
US ADP Non-Farm Employment Change at 12:15 am and President Trump is due to speak about Iran, in Washington DC
Image Credit: The Star