Asian indices ended sharply lower after Iran fired missiles at two U.S. bases in Iraq. There are no casualties in the American personnel as the strike was a measured response to General Soleimani killing last week. The missiles attack sent safe-haven assets soaring while stocks plunged.
The Nikkei 225 ended 1.57% lower at 23,204, the Hang Seng index is 1.16% lower at 27,999. The Singapore FTSE Straits Times is 0.44% lower at 3,233 while the Shanghai Composite finished 1.12% lower at 3,069.
European stocks after a negative start managed to recover some of the losses. DAX has now turned positive adding 0.38% at 13,277. CAC40 gives up 0.04 at 6,009, while the FTSE MIB in Milan is 0.29 per cent higher at 23,790. In London, the FTSE 100 is 0.09% higher at 7,582.
In commodities markets, the crude oil price is 0.89% higher at $63.26 as traders digest the recent escalation in the Gulf region. Brent oil is 1.17% higher at $69.07 per barrel. Gold price spiked above 1,600 after the news which while as of writing has retreated to 1,593. The gold outlook is clearly bullish now as traders flock to safe-haven assets. The immediate resistance stands at 1,611 the recent high, while the support is at 1,447 the recent low.
In cryptocurrencies markets, the bitcoin continues higher for the fourth day in a row adding 2.17% at $8,335 hitting the daily low at $7,949 and the daily high at $8,444. BTCUSD momentum is bullish now as the crypto pair breached above the 100-day moving. Support for BTCUSD stands now at $7,000, while the next support level holds at 6,628 recent low.
On the other hand, resistance stands at 9,925 high and then at the 10,000 round figure. Ethereum ETHUSD trades 1.42% higher at 145.03 with capitalization now at 15.87 billion, and on the upside, resistance for Ethereum stands at 200, the recent high, while the support stands at 117.09 the previous week low. Litecoin (LTCUSD) is trading 5.24% higher at 47.93. The crypto market capitalization has reached $219.23 billion.
In the Lookout: Markets await President Trump’s statement later today on Iran.
The Australian residential building approvals increased 11.1% in November, following a revised 7.9% decline in October.
The People’s Bank of China (PBOC) has set the Yuan reference rate at 6.9450 versus yesterday’s fix at 6.9690.
Trading Perspective: In forex, the US dollar index trades 0.16 per cent higher at 97.13, the AUDUSD is 0.18% lower at 0.6856 against the US dollar. NZDUSD trades 0.09% lower at 0.6634. USDCHF is 0.02% lower at 0.9698.
GBPUSD trades 0.03% higher at 1.3122 as we are getting closer to the Brexit deadline on January 31st, 2020. Immediate support for the pound against the US dollar now stands at 1.2578 low which if broken, might push the pair further down towards 1.20. On the upside, the first resistance will be met at 1.3511 recent high.
EURUSD trades 0.26% higher at 1.1123 as the pair’s short term momentum is neutral now. The first resistance for the EURUSD stands at 1.1224 recent high. On the other hand, support is at 1.1110 today’s low and then at 1.10.
USDJPY is trading 0.26% higher at 108.70, having hit the daily low at 107.64 and the daily high at 108.81. USDJPY will meet support at 105.43 the low from August 22nd. On the upside, initial resistance for the USDJPY now stands at 109.69 recent high.
USDCAD trades 0.12% higher at 1.3018, as the Canadian dollar pressured by weaker crude oil. The pair will meet first support at 1.2950 the recent low while the next support level stands at 1.29 round figure. On the flip side, resistance will be met at 1.3066, the high from December 31st.
