Risk-off moves continue to unwind overnight
As reported yesterday the market has taken Iran's actions and Trump's speech as a reason to move to a risk-on state once again. Safe haven flows unwound with USD/JPY and equities moving higher while gold and oil nursed losses. Overnight the Nikkei 225 (2.31%), ASX (0.83%) and Shanghai Comp. (0.91%) all pushed higher.
Moving on to commodities. gold dipped back below the key support zone of $1557.10/oz. It seems that traders and investors feel that this conflict is essentially over, could it be pre-mature?.
Oil has made a massive move away from the highs of around $65.66/bbl to trade at $59.76/bbl today. The major oil companies in the Iran and Iraq region have said production has not been affected so the move is consistent with the current market theme.
Copper has moved 0.20% higher overnight and pushed above $2.80/lb once again. The key level to watch for the red metal is the previous wave high at $2.84/lb. This would mean the uptrend is still intact and we may be heading to the $3.00/lb psychological resistance.
Today we are looking out for German industrial production, EU employment figures, US initial jobless claims and comments from BoE's Carney, BoC's Poloz, ECB's Weidmann, Fed's Evans, Williams and Kashkari.