News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Mixed
More View more
Real Time News
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/9Bjkh5413e
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/FqAsp91Gia
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here: https://t.co/7t4BzmLg8w https://t.co/cKOUmtj7Dj
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/TnL91f7sl7
  • Human error in the forex market is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Learn about the top ten trading mistakes and how you can avoid them here: https://t.co/i8E2AXtzF3 https://t.co/cDcjl3Ue09
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/KWOX5wSipe
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/cwSWCpKtaj
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sZLTs https://t.co/zu5hMovbz6
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/QMKyTBOKNG
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/aRkGoNvj6D
Crude Oil Prices Climb on US Airstrikes, Iran's Response in Focus

Crude Oil Prices Climb on US Airstrikes, Iran's Response in Focus

David Cottle, Analyst

Crude Oil and Gold Talking Points:

  • Crude oil prices spiked up on news that a key Iranian general hand been killed in a US drone strike
  • The attack has put Middle Eastern geopolitics firmly back on the radar
  • Gold prices made strong gains too, but look very stretched

Crude oil prices got a sharp boost Friday as news that the United States had killed a key Iranian military leader, among other figures, in an airstrike on Baghdad.

General Qassim Soleimani was the leader of Iran’s Quds Force, an elite unit within the Revolutionary Guard Corps. He died in the strike as did Iraqi paramilitary commander Abu Mahdi Al-Mohandes. Some sources have claimed that a deputy leader of the Lebanese Hezbollah was also killed. The attack came after days of escalating tensions in the region, and the storming of the US embassy in Baghdad.

US crude oil prices rose by well over two dollars a barrel in the aftermath. Such rises on increased Middle Eastern tensions are not uncommon as investors weigh the effects of any conflict escalation on supply in this crucial region for energy markets. Iran for its part has threatened retaliation.

Oil prices were already supported by hopes for progress on trade between the US and China, with a phase one trade deal still apparently set for signing on January 15. Moreover, production cuts from traditional producers were announced last year and set for application this month. They too are underpinning prices.

However, Friday’s action saw a broad slide in risk appetite with most sock markets taking fright at the US action. This seems to have capped gains for oil prices which are now well below their session peaks.

Crude Oil prices, 5-minute chart

Broadly prices remain well within the uptrend channel which has dominated the market since the start of October and taken prices back up to September’s highs. Assuming global risk appetite will let them, investors will look to the next US inventory data which are coming up on Saturday for the Asia Pacific region. Markets will pay very close attention to these given the run of surprising drawdowns seen in the last two weeks.

Gold Soars as Risk Aversion Kicks Back In

Gold prices got an unsurprising lift from Friday’s events as investors sought safety in such countercyclical assets.

Gold prices, daily chart.

The impetus was strong enough to take the market right up through a resistance zone which had previously capped it, and back up to within striking distance of 2019’s highs. It’s worth noting, however, that prices’ strong acceleration since late December has taken them into severely overbought territory. Gold looked in need of some consolidation before it spiked up on Friday, it looks even more in need of it now. Some caution will be warranted as markets return to full, post-holiday strength next week.

Commodity Trading Resources

--- Written by David Cottle, DailyFX Research

Follow David on Twitter@DavidCottleFX or use the Comments section below to get in touch!

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES