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The United States killed Iranian Major-General Qassem Soleimani, head of the elite Quds Force and architect of Iran’s spreading military influence in the Middle East, in an airstrike on Friday at Baghdad airport, the Pentagon and Iran said.
EQUITIES
Asian markets and US futures are falling after U.S. airstrikes in Iraq killed a top Iranian commander, heightening geopolitical tensions. Overnight, Wall Street's major indexes notched record highs in their first session of the decade.
OIL
Oil prices surged on news of Soleimani’s death, which ramped up supply worries as the geopolitical situation deteriorated. The global benchmark Brent crude surged 2.97% higher to $68.22 per barrel and U.S. West Texas Intermediate crude jumped 2.81% to $62.90 per barrel.
CURRENCIES
The dollar eased 0.4% to 108.14 yen following the news, breaching several layers of chart support and reaching its lowest since early November. The euro dipped to a three-week low at 120.63 yen. The pound was flat at $1.3135, after easing from a top of $1.3266 on Thursday. The euro stood at $1.1171, after backing away from major chart resistance around $1.1249.
GOLD
Gold rallied after an Iraqi militia spokesman told Reuters that Iranian Major-General Qassem Soleimani and Iraqi militia commander Abu Mahdi al-Muhandis were killed in the attack. The precious metal looks all set to post a weekly gain of 1.9% so far, the fourth straight week of gains.
Economic Outlook
Today in market the main focus will be FOMC meeting minutes and ISM manufacturing PMI data from the US. Currently, the market is pricing in dovish FOMC meeting minutes because the Fed Chair Jerome Powell said last time that they are likely to keep rates on hold until mid-2020. Economists are expecting a slight surge in the ISM manufacturing PMI figure, which is likely to report reading of 49 vs. 48.1.
Technical Outlook
NZD/USD: As per recommendation Kiwi found strong sellers below 0.67 and the pair currently trading below 0.6650. The next important levels to watch 0.6620 and 0.66.
Gold: Gold trading at 4- month high on Friday after US airstrikes in Iraq and currently trading at $1548. The yellow metal technically at an oversold level now, we may see a short term retracement to $1540 and $1535 if it holds below $1550.
Quote of the day: It’s the old story again; Gold is being bought as a safe haven asset- Michael Widmer.
DAILY MARKET REPORT
The US reported lower-than-expected US inflation numbers for July on Wednesday. The consumer price index report showed that US inflation fell to 8.5%
