Saudi Arabia, Egypt, Bahrain and the United Arab Emirates (UAE) have cut links with the Gulf Arab state Qatar today, accusing it of supporting extremism and terrorist groups, including the ‘Muslim Brotherhood.’ The UAE has given Qatari diplomats 48 hours to leave the country and officials were cited saying this was done to “protect national security from the dangers of terrorism and extremism.” Crude oil and gold prices edged up on the commodity market after this move.
Three killers who killed seven people and injured 48 on Saturday night on the London Bridge has been identified by the police. This attack caused tensions in the global markets, and today, the pound held weaker after a van ploughed into pedestrians during the weekend. As such, the GBP/USD pair was seen losing value by 0.14 percent as it traded at $1.2869 earlier today. Meanwhile, Asian shares traded mixed, with the ASX 200 losing 0.74 percent, whereas the Kospi index edged up by 0.19 percent.
The U.K. is all set to release its Services Purchasing Managers Index (PMI) for May, due at 08:30 GMT and readings for this is expected to further affect the U.K. currency. The U.S. ISM Non-Manufacturing PMI report for May will be presented at 14:00 GMT and in this regards, traders need to pay much attention to the U.S. dollar and the dollar index.
On Friday, the EUR/USD pair hammered, thus picking up new heights as from 12:00 UTC at the 1.12056 level to close this bullish trend at the 1.12694 level, the same hour. In yesterday’s trend, the asset was seen much volatile on the market. However, today it is seen moving towards a downtrend as it started tumbling from 03:00 UTC at $1.12734. It is expected to consolidate as from 16:00 UTC today, use the Classic Digital options.
The Japanese index recorded several momentary jumps on Friday, starting from 14:00 UTC at 20073 points to reach 20163 points by 19:00 UTC. It started today’s session bullishly as from the 20118 level at 00:00 UTC and started picking up strength, the same hour. Its highest level from the early trading hours was at 20194 points around 04:00 UTC. The Nikkei 225 may rise further through the day.
Friday, the commodity recorded its lowest level at 09:00 UTC when it was recorded trading at $49.17 a barrel, and afterwards it was seen much volatile till the end of its session. Today, the Brent crude oil gained momentum from the very beginning of the trading hours from 01:00 UTC at the $49.93 level to close this bullish trend by 04:00 UTC at the $50.54 level. It may rise further later during the day.
The Gold vs Oil pair can be traded when it is made available today. Commodities cuh as GOLD and GOLD/EUR are available on the Long Term Trading tool. Since the Brent crude for August delivery edged higher, the BRENT CRUDE OIL-APR16 can be a good opportunity to trade on.
The EUR/GBP, GBP/USD and the GBP/JPY pairs can be traded with any tools available on our trading platform today as London attacks’ effect is still affecting the Pound. Asian shares are also recommended to trade Monday.
Wall street indices and currency pairs such as the AUD/USD, USD/CAD and the USD/JPY can be traded in regards to today’s economic events.