Main topic of the day for today is undoubtedly oil and its surge. Overnight something very important has happened and now the entire world is going to face the consequence of what happened last night.
According to the source “General Qasem Soleimani, Iran’s most powerful military commander, was killed by a U.S. airstrike in Iraq on Thursday night, sending global markets into a spin. The Pentagon said Soleimani was “actively developing plans to attack American diplomats and service members in Iraq and throughout the region.”. The attack reignited geopolitical tensions with Iran’s Supreme Leader Ayatollah Ali Khamenei promising “severe revenge.”
Surely, attack on one of the biggest oil producers in the world was sure to send oil prices into a spin. Price for both WTI and Brent have surged overnight, jumping by almost 4 percent each. This means that in the nearest future we will see the reaction of oil-tied currencies towards the surge. What are these currencies? Ruble and Canadian dollar are probably the most popular.
Of course oil prices are not the only thing that is calling for us being concerned right now. This attack means that a full-blown war can soon emerge between USA and Iraq. Surely, this tension is going to change a lot in oil trading over next several weeks. And we have to watch out for these changes.
So, the beginning of the year is going to be very interesting. So good to have helping trading signals by our side.