FXEMPIRE
All

Risk Aversion Hits as Iran Retaliates. Expect Little Influence from the Stats…

Attacks on bases across Iraq in the early hours drove demand for the safe havens. Stats are likely to be brushed aside throughout the day…
Bob Mason
WTI and Brent Crude Oil

Earlier in the Day:

It was a relatively quiet day on the Asian economic calendar in the earlier hours of this morning.

Key stats included November building approval figures out of Australia.

Outside of the stats, Iran retaliated to last week’s U.S airstrike, with news hitting the wires in the early hours of attacks on military bases in Iraq. With the bases holding U.S interests, the latest move suggests possible war as the U.S sends more troops to the region.

For Japanese Yen

While there were no material stats to provide direction, the news from overnight and early this morning drove demand for the Yen.

At the time of writing, the Japanese Yen was up by 0.69% to ¥107.69 against the greenback.

For the Aussie Dollar

Building approvals jumped by 11.8% in November, month-on-month, reversing an 8.1% slide in October. Economists had forecast a 2.1% increase.

The Aussie Dollar moved from $0.68530 to $0.68552 upon release of the figures, before pulling back. At the time of writing, the Aussie Dollar was down by 0.24% to $0.68529, with the risk-off sentiment weighing.

Elsewhere

The Kiwi Dollar was down by 0.36% to $0.6619, with risk aversion weighing early in the day.

The Day Ahead:

For the EUR

It’s a relatively quiet day ahead on the economic calendar. Key stats include November factory order figures out of Germany and finalized business and consumer confidence figures for the Eurozone.

Following December’s dire manufacturing PMI out of Germany, the figures will need to impress to provide the EUR with support.

For the Eurozone, finalized business and consumer confidence figures should have a muted impact on the EUR, barring any revisions…

With stats on the lighter side, however, we expect the focus to remain on the Middle East as the situation deteriorates.

At the time of writing, the EUR was up by 0.09% to $1.1163.

For the Pound

It’s a relatively busy day ahead on the economic calendar. December house prices figures are due out later this morning along with 3rd quarter labor productivity numbers

We expect the Pound to brush aside the house price numbers, with the market reaction towards Iran’s moves and likely U.S response driving the majors.

3rd quarter labor productivity numbers may garner some interest though. With expectations of a pickup in economic activity in the wake of the General Election result, any downside would likely be limited, however.

At the time of writing, the Pound was down by 0.08% to $1.3115.

Across the Pond

It’s also a relatively busy day on the data front. Key stats include December’s ADP Nonfarm Employment Change numbers.

Forecasts are for a rebound from weak November figures. Sub-100k numbers would be Dollar negative.

Outside of the stats, geopolitics will continue to be the key driver, with the Middle East in focus…

The Dollar Spot Index rose up by 0.35% to 97.005 on Tuesday. At the time of writing, the Dollar Spot Index was down by 0.13% to 96.84.

For the Loonie

It’s a quiet day on the economic calendar, with no material stats due out to provide the Loonie with direction.

With Iran responding to the U.S drone strike from last week, oil prices took an early jump this morning providing support.

The Loonie was up by 0.03% to C$1.3000 against the U.S Dollar, at the time of writing.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US