Middle East Conflict Is in the Focus of Attention

The US dollar strengthened against a basket of major currencies. Yesterday, the dollar index (#DX) closed in the green zone (+0.37%). The conflict between the US and Iran is in the focus of attention. It should be recalled that last week, US President Donald Trump ordered the airstrike in Baghdad. As a result, Iranian General Qasem Soleimani was killed, that caused tensions between the countries. On Monday, US Secretary of Defense Mark Esper said the United States had not planned to withdraw troops from Iraq. On Wednesday, Iran carried a series of missile strikes at two US air bases in Iraq. After the attack, Iran vowed revenge and stated that it was considering 13 different ways to create a “historical nightmare” for the United States. These events support the demand for safe-haven currencies.

Optimistic economic data from the US were published yesterday. ISM non-manufacturing PMI counted to 55.0 in December, while experts expected 54.5. Today we expect a report on ADP nonfarm employment change. In December, the Canadian Ivey PMI slowed down from 60.0 to 51.9.

The "black gold" prices are rising after fall the day before. Currently, futures for the WTI crude oil are testing the $62.85 mark per barrel. At 17:30 (GMT+2:00), US crude oil inventories will be published.

Market Indicators

Yesterday, there was the bearish sentiment in the US stock market: #SPY (-0.28%), #DIA (-0.43%), #QQQ (-0.01%).

The 10-year US government bonds yield has declined. At the moment, the indicator is at the level of 1.79-1.80%.

The Economic News Feed for 08.01.2020:
  • - ADP nonfarm employment change at 15:15 (GMT+2:00).

by JustForex, 2020.01.08

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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