Yen, Franc, and Oil Spiked Upwards Due to Middle East Political Impasse

Yen, Franc, and Oil Spiked Upwards Due to Middle East Political Impasse

The yen and Swiss franc strengthened strongly as the market gave up its solid risk appetite to avoid risks. Regardless of registered outings in US stocks, Asian markets have retreated due to the fresh political crisis in the Middle East. The price of oil increased in addition to gold, while Treasury yields fell. In the foreign exchange markets, the Australian and New Zealand dollars are very delicate, but the euro and sterling are similar.

The most significant improvement over the medium term was to break critical short-term support in the USD / JPY pair. Its bounce from 104.45 could have ended at 109.72 so far. A further drop is currently exposed to the 107.70 reversal level first, at this point 106.48. The EUR / JPY may, however, aim to reach 119.99 critical support in the near term. The rupture of the euro against the British pound (EUR / GBP) at the minor support level 0.8476 yesterday was a false breakout. A break of the GBP / JPY at 142.42 confirms that the continued recovery is over. GBP / USD is pressing 1.3105 and the breach will set the general trend for GBP / JPY.

As for Asia, Japan stays on vacation. Hong Kong’s HSI fell 0.17%. China Shanghai SSE fell – 0.30%. Strait Times Singapore Under – 0.52%. Over the medium term, the Dow was up 1.16%. The S&P 500 up 0.84%. The Nasdaq up 1.33%. All records were new. The 10-year yield fell – 0.037 to 1.882.

EUR/USD Lengthens Its Bears on Account of Geopolitical Tension
EUR / USD plunges beneath the 1.1150 after the assassination by the US forces a notable Iranian military controller in Iraq. The mood for no-risk sends financial speculators to a secured US dollar. Inflation rates in Germany and the index of business activity in the US manufacturing sector are expected.

The currency pair was above 1.1150, which was exceeded by the beginning of September and soon became the maximum level.

To a greater extent, 1.1130 and 1.1110 also held EUR / USD during December. They reach for 1.1065, which offered support at Christmas.

Considering, 1.1175 was high in mid-December. It runs until 1.12, a round figure that offered support in the last days of 2019. Further, we see 1.1220 and 1.1240, which reached the top at about the same time.

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Author : Azeez Mustapha


Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.