Although analysts seem increasingly convinced that the war in the Middle East will be contained, Asian stock markets recorded sharp declines at the start of the week.
➡️ Last week's market ended on a risk-off note, with funds flowing to safe havens, partly due to fears that the war between Israel and Hamas could spread. However, markets this week have seen small declines in assets such as the US dollar and gold . US stock market futures were also slightly higher, but wide-open Asian stock markets fell quite sharply. The Nikkei 225 index fell by more than 2%, while also the HSI it is declining.
➡️ Yesterday's election in New Zealand saw a change of government, as the Liberals in power for the last 6 years were voted out in place of a right-wing government. The New Zealand dollar has gained in response and is now the strongest major currency in the Forex market in the short term, while the US dollar is the weakest.
➡️ The war in the Middle East remains essentially contained to Gaza and Israel, although there have been minor clashes between Israel and Hezbollah on the Lebanese border.
➡️ I Trend traders in the Forex market will be more interested in having a long position on USD/JPY , which continued to strengthen.
➡️ The US Empire State manufacturing index data will be released later today.
➡️ New Zealand's consumer price index (inflation) data and minutes from the Reserve Bank of Australia's monetary policy meeting will be released tomorrow.
Credit by DailyForex.com