Forex Marketz Daily Forex News – Fully Markets Update
The U.S. dollar drifted higher during the Asian trade session on Monday. Traders are looking for safe haven assets as tensions are mounting in the Middle East between Iran, the United Kingdom and the United States. Iran apparently seized a U.K. flagged oil tanker.
The gains seen with the dollar were capped, however, as traders still expect the Federal Open Market Committee (FOMC) to slash its headline Fed Funds rate by 25 basis points later this month. Traders are also watching other central bank decisions over the next couple of weeks, including the European Central Bank, due this week on Thursday.
Global trade talks between the United States and China will also affect the currency markets. Both nations have restarted negotiation.
Looking at the USD/JPY exchange rate, this market is trading above 108 yen. This is its highest level since last Wednesday. However this market remains range bound trading between 107 and 109 yen.
The dollar index, which measures the U.S. currency in a basket against six other Forex majors, was fairly flat at 97.17. The USD index was up 0.35 percent last week.
The EUR/USD exchange rate is trading near a critical support level at 1.12.
Currency Traders watch Geopolitical Tensions and Support the Dollar
Traders in the financial markets are watching mounting geopolitical tension. Especially in the Middle East between the Iran, the United Kingdom and the United States as the Iranian navy has apparently seized a U.K. flagged oil tanker. There is video footage of the Iranian Navy defying a U.K. naval warship as they seized a tanker in the Strait of Hormuz on Friday.
The financial markets are also watching news out of China and the United States as both nations restart trade talks to bring an end to the bitter trade war. Some companies out of China are reportedly looking to buy U.S. agricultural products. This is a potential positive development.
