An uncertain wind blows over European equities this morning following Iran’s attack last night on US targets in Iraq, wounding more than 30 US soldiers. The attack took place as a response to last week’s US air raid which led to the death of Iranian General Soleimani in Baghdad. While the Iranian government quickly confirmed it does not seek any escalation, Foreign Minister Zarif also added the nation will defend itself “against any aggression”.
Photo by Stanislaw Zarychta.
These rising geopolitical tensions had a strong impact on safe heaven such as gold, silver, Swiss franc and Japanese Yen, however, share markets seem to be resisting the news despite small corrective moves following the opening bell.
All of EU benchmarks are drifting slightly lower today, with the OMX-30 in Stockholm registering the worst performance so far. The DAX-30 index registered a rebound over the 13,105pts-13,115pts zone in early trading as there remain plenty of bull traders over the 13,100pts zone. However, a break-out of this level could drive prices back to 13,080pts and 13,065pts very quickly. That move could be sparked by the Trump administration’s response to the Iranian attack, depending on the tone Donald Trump will adopt during his speech expected later today.
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
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© 2019 High Leverage FX - All Rights Reserved.