The US dollar spiked amid renewed tensions in the Middle East; XAUUSD is down roughly 1%; EURUSD is slipping by around 0.1%, whilst Bitcoin is softer by approximately 0.8%.
- The USD got firmer as the US strikes interrupted the current ceasefire.
- XAUUSD is trading lower despite the more cautious geopolitical backdrop.
- EURUSD still trades within a broad sideways-to-lower range unless markets receive a more convincing improvement in global sentiment.
- Bitcoin is weakening somewhat more noticeably, declining around 0.8%.
Today’s focus
FX snapshot
XAUUSD
Although gold has gained 1% this morning, a more peaceful geopolitical backdrop would reduce demand for traditional safe-haven assets.
EURUSD
Currently, with liquidity reduced by holiday closures in both the US and the UK, the pair’s movements today will not be significant.
BTC
The market’s anxiety continues, leaving cryptocurrencies vulnerable whenever geopolitical tensions re-emerge.
Market sentiment
This morning’s session is unfolding in a noticeably more cautious mood following a modest renewed escalation in tensions across the Middle East. Markets are caught between two competing narratives once again: hopes for eventual diplomatic stabilization on one side, and fears of renewed escalation on the other.
