Here’s everything you should know about Forex for Friday, April 19:
On the final trading day of the week, in Forex market the safe haven movements dominated financial market activity. As investors sought refuge amid mounting concerns over a worsening crisis in the Middle East. There will be no major data releases on the economic agenda. So market participants will focus on geopolitical developments.
Reports of Israeli rockets targeting Iran prompted a flight to safety early Friday morning. Although Israel has yet to formally confirm a retaliatory attack against Iran. Multiple news sites, including CBS and CNN, claimed that US authorities said Israel carried out the hit. On the other hand, Iranian state media reported. That the air defense system shot down three drones over the central city of Isfahan. Furthermore, a senior Iranian source told Reuters that there were no plans for quick response because it was unclear who was responsible for the event.
After Israeli rockets target an Iranian location, financial markets are plunged into risk aversion. Reflecting the risk-averse market environment, US stock index futures are down 0.55% to 0.8% in the early European session. Meanwhile, the US Dollar Index has remained relatively stable above 106.00. After ending in positive territory on Thursday.
Crude oil prices rose sharply in response to the news. After hitting a daily high of $85.58 during Asian trading hours. The barrel of West Texas Intermediate (WTI) lost a significant amount of its gains and was last spotted climbing 1.6% on the day to $83.15.
Forex Market movement in pairs.
In Forex Following the rumors, gold surged beyond $2,410 before falling back to around $2,380 in the European morning.
EURUSD dipped below 1.0600 early Friday. The pair recovered its losses and was last seen trading flat on the day, just below 1.0650.
GBPUSD fell to its lowest level since November, below 1.2400, during the Asian session. The pair reversed course and recovered to 1.2430 ahead of the European session. The UK Office for National Statistics reported on Friday that retail sales increased by 0.8% year on year in March, following a 0.3% drop in February.
In Forex market During Asian trading hours, data from Japan indicated that the National Consumer Price Index (CPI) increased 2.7% year on year in March, down slightly from the 2.8% increase in February. This reading was in line with market expectations. Meanwhile, Bank of Japan (BoJ) Governor Kazuo Ueda stated that if the yen falls significantly, interest rates may be raised again, underscoring the impact currency movements may have on the timing of the next policy change. After dropping dramatically to 153.50 earlier in the day, USDJPY retraced its dip and was last seen trading fairly steady on the day near 154.50.
