US Dollar Talking Points:
- Yesterday, after market close, a quick run of fear enveloped global markets as reports of a missile strike from Iran hit the headlines. This created moves of strength in Oil[1], Gold[2], the Yen[3] and US Dollar[4].
- A later tweet from Iran Foreign Minister Javad Zariff seemed to soothe matters, indicating that the strike was a ‘one and done.’ Since, those gains have dissipated from Gold, Oil[5] and the Yen, while the US Dollar has continued to push-higher[6].
Quick Run of Fear, Mostly Priced Out
The big item for today was a quick run of fear from last night that, largely, has been priced-out of markets. Upon news that Iran had sent a series of missiles towards a military base in Iraq, the initial response was one of fear with US equity futures tumbling as Gold and Oil prices spiked. Those moves proved to be temporary, however, as a tweet from Iran’s Foreign Minister indicated that the missile strike was a ‘one and done’ in response to the US drone strike that killed Qassem Soleimani. S&P 500 equity futures are already back above yesterday’s close, Gold prices have given back most of that spike[7] and Oil prices have taken all of those gains out, and then some[8].
The big question now is what President Trump may say or do on the matter, as he’s expected to offer comments later this morning.
Gold Hourly Price Chart
Chart prepared by James Stanley[9]; Gold on Tradingview[10]
That quick run of fear had reverberations through FX markets as well, with both the Yen and US Dollar showing quick spurts
