The apparent lack of immediate retaliation by Israel for the weekend's Iranian attack saw markets open with slightly improved risk appetite.
➡️ Iran launched a significant attack on Israel on Saturday night using drones, cruise missiles and ballistic missiles. Israel and cooperating nations managed to intercept almost everything it fired, and Israel suffered only one casualty and some very minor damage to a military air base. The US appears to have dissuaded Israel from giving up retaliation, at least for the time being, and this has seen tensions ease in the region. We can expect to see i decline at the same time crude oil and gasoline prices.
➡️ Monday's Asian session saw the USD/JPY currency pair rise quite strongly to reach a new 34-year high just below the round number of ¥154. Traders who follow trends they will be interested in the long side, even if the breakout point it is now slightly below ¥152.
➡️ Nickel and aluminum prices rose sharply after new sanctions were imposed on Russia, which is a major producer of both metals.
➡️ Markets are awaiting today's release of:
– US retail sales data
– US Empire State Manufacturing Index
➡️ In the Forex market , since Tokyo opened today, the strongest major currency has been the Australian dollar, and the weakest major currency has been the Japanese yen. The Israeli Shekel is also increasing in value quite strongly.
➡️ The minor raw material, cocoa continues to appear very bullish after closing another day higher last Friday, and trading higher again this morning in London. The value of the superfood has nearly tripled in the last year alone, and many analysts suggest that supply-side shortages are at least partly responsible for the meteoric rise. Every year there is more and more demand for cocoa as it is coveted as a key ingredient for chocolate but also as a superfood in its own right. Trend traders will be interested here on the Long side. In addition to cocoa futures, cocoa ETNs are available which may be more suitable for traders and retail investors.
➡️ I markets are awaiting the political meeting which will take place later today at the Central Bank European . The Bank is expected to leave the main refinancing rate at 4.50%.
➡️ Impactful data regarding US PPI data and unemployment claims will be released later today.
Credit by DailyForex.com