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Morning Macro Round Up: Dollar Slips As Middle East Tensions Mount

Published 06/06/2017, 08:17
Updated 09/07/2023, 11:32
GBP/USD
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XAU/USD
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ASX
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USD/NZD
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GC
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HG
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CL
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DXY
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TIOc1
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US indices closed lower yesterday an average of 0.14% and Asian bourses followed suit with the ASX (AX:ASX) the worst performer after the RBA left rates and policy unchanged. Another thing to keep aware of today is the ongoing political tensions in the middle east after Saudi Arabia and several other Arab states severed ties with Qatar, accusing it of supporting extremism.

In commodities markets, copper is trading flat this morning after a unconvincing lower close yesterday. Gold is still on the rise as the DXY falls and the aforementioned problems continue in the middle east. Spot WTI bounced of $47/bbl and now trades higher by 0.3%. Shanghai steel falls for 9th day on weak demand outlook, which may pressure iron ore.

The USD has sold off over night, the DXY is trading near the 96 handle which is just below a strong technical support level. The biggest beneficiary is the NZD which has jumped to break through the 0.7150 resistance level. Elsewhere, cable is still going strong up 0.2% just be aware the latest polls have all come before the attacks in London look out for polls taken after.

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