Risk appetite hardened on fresh fears of a widening war in the Middle East and Fed Waller's comments on rates, pushing safe-haven assets higher and stocks lower.
➡️ Stock markets are collapsing almost everywhere, with Asian indices such as the Nikkei 225 and the Hang Seng Index which showed daily drops above 1.5%. Safe haven assets like the US dollar and yields are stronger. That's partly because the Fed's Williams said rates will have to remain at restrictive levels for some time to come, and partly because of renewed fears that the war between Israel and Hamas will widen to include Hezbollah and perhaps even Israel. 'Iran and the United States later. President Biden's visit to Israel yesterday.
➡️ In the Forex market, the USD/JPY currency pair posted its highest daily close in nearly a year as it continues to threaten a bullish breakout above the big round number at ¥150.00, so it will be interesting for traders of long-term trends. side. Since Tokyo opened, the strongest major currency has been the Japanese yen, while the Australian dollar has been the weakest. The US dollar and Swiss franc, other safe haven assets, are also strong. There are also valid trends in favor of the USD in the EUR/USD and GBP/USD currency pairs.
➡️ Precious metal prices continued to rise, with the gold that yesterday it reached a 2-month high in USD terms, and then remained stable above the support at $1,945.
➡️ UK CPI (inflation) data released yesterday was slightly higher than expected, at an annualized rate of 6.7% when 6.6% was expected. The pound today is one of the weakest major currencies, despite the fact that it is naturally aggressive news.
➡️ Australian unemployment data released yesterday was slightly better than expected, at 3.6% compared to 3.7%.
➡️ There will be a release of unemployment claims in the United States later.
Credit by DailyForex.com