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.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
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
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Mixed
More View more
Real Time News
  • China-US trade talks made breakthrough last week with both sides showing a strong will to reach a final deal - Global Times
  • RT @HuXijin_GT: Based on what I know, China-US trade talks made breakthrough last week and the two sides have the strong will to reach a fi…
  • If a #Brexit deal is reached, Sterling will rally further, while in the equity space, the domestically-focused FTSE 250 should outperform the export-focused #FTSE 100. Get your market update from @nickcawley1 here: https://t.co/nfgon4la8s https://t.co/IEBfQ1wYx9
  • Indices Update: As of 13:00, these are your best and worst performers based on the London trading schedule: US 500: -0.13% Wall Street: -0.21% Germany 30: -0.32% France 40: -0.51% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/Kh9F9IPP6d
  • RT @carlquintanilla: Morgan Stanley thinks the next few weeks/months could “resemble what we saw last December, albeit less dramatic given…
  • RT @onlyyoontv: Chatted China’s take on DC trade talks and, @SullyCNBC— as I mentioned, Tencent has started broadcasting @NBA games again!…
  • BoE's Cunliffe says Brexit uncertainty has weighed on investment, adds that even if we get a Brexit transition deal, still do not know what the final trading relationship will be $GBP
  • .@DailyFX has just launched our new Worldwide Commodities Infographic. Be sure to check it out here to track major geopolitical players as well as live market prices -> https://www.dailyfx.com/research/global-commodities https://t.co/gUmzIfJReN
  • RT @TeddyVallee: *CHINA TO STRICTLY PROTECT IP RIGHTS, PREMIER LI SAYS
  • RT @onlyyoontv: When asked about next steps, @stevenmnuchin1 tells @CNBC: 1) deputy level calls this week 2) top negotiators’ (Lighthizer,…
US Dollar, Yen, CHF May Rise on Saudi Aramco Attack, Iran Risks

US Dollar, Yen, CHF May Rise on Saudi Aramco Attack, Iran Risks

2019-09-16 07:00:00
Dimitri Zabelin, Junior Currency Analyst
Share:

Crude Oil Prices, US Dollar, Japanese Yen, Swiss Franc – TALKING POINTS

  • US Dollar, Yen, Swiss Franc may rise on risk aversion
  • Saudi Aramco drone strike over weekend was catalyst
  • Iran risks likely to escalate as EU is put in a hard spot

Learn how to use political-risk analysis in your trading strategy!

The US Dollar, Japanese Yen and Swiss Franc may rise in the upcoming session as result of a premium being placed on anti-risk assets in an environment of market-wide uncertainty. Crude oil prices surged over 18 percent early into Monday’s trading session after news broke over the weekend that Saudi Arabia’s Aramco oil processing facility was hit by drone strikes over the weekend.

US officials have blamed Iran for ordering the attack via a proxy in Yemen. This comes as the EU is attempting to negotiate with officials in Tehran to not abandon the 2015 nuclear agreement after the US recently shredded the deal and reimposed sanctions. European officials have attempted to incentivize Iran to adhere to the stipulated guidelines through employing a non-US Dollar denominated trade mechanism known as INSTEX.

The Special Purpose Vehicle (SPV) was created with the intention of stoking economic activity in Iran to counter the growth-impeding affect of US sanctions. However, it appears these efforts have not only been in vain but have caused a further deterioration in US-EU diplomatic relations. Iran’s alleged involvement the attack against Saudi Arabia makes Brussels-Tehran negotiations that much more difficult.

Learn how to strategize around political risk here!

Chart of the Day: S&P 500 Futures Gap Lower on Saudi Aramco Attack – Will it Echo into European Equity Markets?

Chart showing S&P 500 futures.

S&P 500 futures charted created using TradingView

FX TRADING RESOURCES

--- Written by Dimitri Zabelin, Jr Currency Analyst for DailyFX.com

To contact Dimitri, use the comments section below or @ZabelinDimitrion Twitter

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

DISCLOSURES

News & Analysis at your fingertips.