Daily thread to exchange ideas and to share your thoughts
Good day, everyone! Hope you're all doing well as we get things going in the session ahead. Markets are adopting a more risk-off tone after the US launched an airstrike in Baghdad, killing a top military commander from Iran.
That is seen as a major escalation in US-Iran tensions and the latter has vowed 'severe retaliation' in response. Though I would argue that the number one rule in fighting back is to never say that you would be doing so. Actions speak louder than words, after all.
In any case, it still feeds into the more risk averse mood and markets are still reeling from the news and are keeping flows into safety assets. As a result, gold, yen and bonds are the biggest beneficiaries while equities look set for a bad day at the office.
It looks like the new year is well and truly taking off and this will add an interesting dynamic to markets in the year ahead. What are your views on the market right now? Share your thoughts/ideas with the ForexLive community here.
