The G7 meeting is advancing, and the Iran-Israel conflict is still making headlines. There has been news of advanced US-Canada and US-UK trade talks, as the G7 leaders are discussing, we will get some headlines soon.
The latest development has seen launches of the largest salvo of ballistic missiles by Iran towards Israel, and Netanyahu saying that killing Iran’s leader Ali Khameini, wouldn’t “escalate the conflict, it’s going to end the conflict”.
Nevertheless, markets have been in a surprisingly ecstatic mood with Equity indices rallying all around the world – proof that market expectations for the conflict had been for the worse, as even the latest headlines haven’t done much to calm the positive sentiment on the session.
The Crypto market has been enjoying the positive sentiment around markets, with and , respectively, up 3% and 4.40%. Even with what seemed like strong sell-offs, cryptocurrencies are consolidating at their highs, and ETFs are not seeing many outflows. For now, the picture is looking solid for this market.
Industrial metals haven’t moved much, with still consolidating in a tight range and retesting last week’s highs, having corrected a bit. is unchanged on the day.
and have been the laggers of the session, even though both commodities are trading above the previous week’s ranges. Any major rally in these two assets will surely be accompanied by accrued volatility in other products. Keep an eye on their prices.
A further selloff would confirm that the conflict is priced in, though things may always change.
Source: TradingView
A Picture of Yesterday’s Performance for Major Currencies
Source: OANDA Labs
Commodity currencies are leading, and safe havens are lagging in a typical risk-on session with both the and down 0.40% against the .
On the other hand, and bulls have enjoyed the sentiment and are up close to 1% on the day.
The US Dollar had seen some selling in the Sunday evening open but has been rallying since early in the US Session and posted a (relatively) strong bullish move in the past hour to come back to unchanged on the day.
The is hovering around the 98.00 psychological zone.
A Look at the Economic Calendar for Tomorrow’s Session
Today’s calendar is filled with low-tier economic data releases throughout the day (not in the calendar image), but most importantly, US with the m/m data expected at -0.7%.
Eurozone data will also see the release of their released at the same time as the (expected at 35 and 23.5 respectively.)
Expect a headline-driven market this week, with the exception of two key data releases—beyond that, the economic calendar remains relatively light.