Geopolitical Risks Support the Demand for Safe Assets

The demand for safe assets is still at a fairly high level due to the US conflict with Iran. Yesterday, US President Donald Trump imposed sanctions against Iran's Supreme Leader Ayatollah Ali Khamenei. The President noted that the sanctions would also affect the Ayatollah's entourage. Donald Trump believes that the new sanctions will not allow Khamenei to use the American financial system. Trump also accused Khamenei of Iran's hostile behavior. The US president said the sanctions were "strong and proportionate response to Iran’s increasingly provocative actions."

In response, Iranian Foreign Ministry Spokesman Abbas Mousavi said that these sanctions signify the end of diplomatic relations between the US and Iran. He also noted that the Trump government was destroying all established international mechanisms for maintaining world peace and security. The US dollar index #DX closed in the negative zone (-0.24%).

Today, investors will assess a number of economic reports from the United States. So, CB consumer confidence index, as well as new home sales, will be published in the US. Financial market participants expect a meeting of the leaders of the US and China during the G20 summit, which will be held on June 28-29 in Osaka.

The "black gold" prices are consolidating after a sharp rise the day before. At the moment, futures for the WTI crude oil are testing the mark of $58.00 per barrel. At 23:30 (GMT+3:00) the API weekly crude oil stock will be published.

Market Indicators

Yesterday, there was a variety of trends in the US stock market: #SPY (-0.12%), #DIA (+0.03%), #QQQ (-0.22%).

The 10-year US government bonds yield is 2.02-2.03%.

The news feed on 2019.06.25:

- CB consumer confidence index in the US at 17:00 (GMT+3:00);
- New home sales in the US at 17:00 (GMT+3:00).

We also recommend paying attention to the speech by Fed Chairman Powell.

by JustForex, 2019.06.25

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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