1. Trump Calls Off Iran Strike
On Thursday, Donald Trump tweeted that Iran “made a big mistake” which caught everyone’s attention. Overnight, reports surfaced that the US military was positioned to wage an actual war on Iran but the very last command to start shooting was not given by the POTUS. President Donald Trump appears to have abruptly called off the military strikes against Iran on Thursday night after previously approving the strikes in retaliation for Iran shooting down a US military drone. Market participants are now looking for clues as to why the attack was averted. On Thursday, risk markets took a little dent on the Iran news, but still the S&P opened and closed at record highs, as Donald Trump loved to tweet about.*
2. Global Stock Markets Correct
Stocks in Asia were lower on Friday morning while the dollar was poised for a weekly loss against major currencies after the U.S. Federal Reserve joined global peers with plans to cut interest rates to support an ailing economic growth. EU bourses opened mostly in the green as the US/Iran crisis was averted at least for now, pushing a small risk-on wave onto the markets. A weaker USD also supported global stock markets.**
3. Forex Preview: EUR Higher
The EUR/USD is currently just above the $1.13 mark on stronger-than-anticipated German and EU PMIs. Meanwhile, the dollar continued to weaken and given how much room the Fed has to lower rates it is quite logical that the USD currency could lose a lot in value while the EUR and JPY currency are likely to continue to edge higher they are already at 0% interest level. The sterling remained subdued after a very dovish BoE yesterday, which could indicate that politically the UK is developing back further away from a working solution which is not helpful for its economy and currency.***
4. Oil Prices Edge Higher
Meanwhile, oil prices spiked early this morning but dipped later on profit taking to now trade about 0.3% higher as of 7:45 GMT. Tensions in the Middle East and hopes for a drop in U.S. interest rates, have kept oil prices supported today. It should be noted that oil prices are currently holding close to their best levels from where we could expect further gains.****
5. Gold Dips, BTC Looks to 10K Mark
Spot gold went through the $1,400 even yesterday before it sharply corrected after the Iran strike was called off. Dips in gold could be very interesting given that there are a multitude of risk reasons in the markets that make a safe haven such as gold attractive. BTC was this week’s steady gainer and is currently marching toward the test of the 10k level. It appears that the bullish momentum continues to be in charge with bitcoin adding as much as 5% as of 7:45 GMT this morning.*****
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Sources:
*CNBC Jun 21, 2019 2:48 AM ET
**Reuters Jun 21, 2019 3:53 AM ET
***FXStreet Jun 21, 2019 03:07 AM ET
****Bloomberg Jun 21, 2019 06:13 AM ET
*** Investing Jun 21, 2019 08:54 AM ET
