Market Snapshot – US Futures Slightly Higher, US Dollar Soars to 2018 HighGeopolitical risks weigh on financial markets on Wednesday as talks between North and South Korea have been suspended. The US dollar continues its strength versus other currencies and commodities.
Rise in Uncertainty
According to reports, talks between North and South Korea have been canceled for now, which brings in some jitters into the market. The market is looking around for some fundamental drivers as the dollar continues to gain in strength on rising bond yields.
US futures are trading slightly higher on positive earnings. Gold continues its bearish sentiment, trading at $1289.40. US dollar index extended gains on Wednesday, trading at 93.40, up 0.28%.
The dollar has been the focus over the last 24 hours after being on the backfoot for much of the last week. At that time, we had mentioned that it was going to be only a correction for the dollar and that it would come roaring back once the things settle down and we saw that yesterday.
The reason was the better than expected data from the US which helped the dollar climb as the anticipation over the future rate hikes from the Fed continues to increase.
- How Close Are We to a Stock Market Crash?
- Cancellation Between North, South Korea Heightens Geopolitical Risks
- Japanese Economy Slumps as the Dollar Roars
Gold Breaks Range
Gold prices crashed after a long-held range and now trading below the $1300 region as of this writing. The range between the $1300 and $1360 regions have been holding for several months now and if the prices continue to hold below this region over the next few days, we could be in for a much deeper correction over the next few weeks.