ForexLive Asia FX news wrap: Yen, oil gain on US killing of top Iran military leader
Forex news for Asia trading 3 January 2020
News broke during the session here that the US had carried out an attack on the head of Iran's Islamic Revolutionary Guard Corps, Qassem Soleimani, killing him (amongst others).
Tensions had been increasing with Iran since the killing of a US citizen last week and an attack on the US embassy in Iraq over the weekend. The escalation today was a missile attack on a convoy carrying the Iranian military leader at Baghdad International Airport. As it became clear who the target was, and the success of the attack, markets responded by buying yen and oil. WTI moved above 63.50 while USD/JPY tested towards 108. Both have since come off those extremes. Gold moved higher, its been strong since is technical break last week and managed to above 1540USD here today before stabilising as I update.
'Risk' was on the retreat, with equities falling back and, in forex, a lower AUD of course.
Other news and data was light, North Korea made some further belligerent noises (see bullets) which didn't do the yen any harm in its rally.
The major news, read from the bottom up for the chronology:
- Iran's Foreign Minister says killing of Soleimain is 'extremely foolish', a 'dangerous escalation'
- Iran's National Security Council has convened an emergency council meeting
- US forces have been put on heightened alert following strikes that killed top Iranian military leader
- Pentagon announces Iranian Quds leader killed
- An official Pentagon statement is expected soon re Iranian military leader killed
- Iranian TV officially announce the death of Quds force commander Qasem Soleimani
- Reports now that US Marines have detained pro-Iran militia commanders in Iraq
- US officials confirm responsibility for missile attack at Baghdad airport
- Iraqi State TV reporting now that Soleimani and Muhandis both killed in air strike
- More on the rocket attack at Baghdad airport - looks like a major escalation confirmed
- Baghdad International Airport rocket attack earlier - 4 killed.
- North Korea's official newspaper warns of an "immediate and powerful" strike
- The first Friday of the months brings the US NFP ... but no, not today
- PBOC sets USD/ CNY reference rate for today at 6.9681(vs. yesterday at 6.9614)
- FX option expiries for Friday January 3 at the 10am NY cut
- UK opposition party attempts to delay leaving the EU by 2 years to prevent a no-deal Brexit
- UK data - BRC shop price index for December -0.4% y/y (expected -0.5%)
- CAD had a good 2019 (OK, the bar was low) but faces headwinds this year
- Here is a view on GBP, remains a buy on dips
- Video: Two charts to watch for the early-year pulse on global growth
- Friday is FOMC minutes day ... when too much liquidity is barely enough!
- Trade ideas thread - Friday 3 January 2020