🌍 [Geopolitical Risk Reignites] Israel Strikes Iran’s Nuclear Facilities – Markets Turn Risk-Off
đź“° Middle East Tensions Intensify
Israel has launched a preemptive strike on Iran’s nuclear-related sites.
In response, Iran retaliated with drone attacks.
While an all-out war has not yet erupted, rising tensions appear inevitable.
If the tit-for-tat escalates, serious implications for global energy and financial markets are likely.
📉 Market Reactions (Current Snapshot)
| Asset | Reaction |
|---|---|
| Crude Oil | Surging |
| Gold | Rising (safe haven demand) |
| US Stocks | Weakening |
| US Bonds | Bought, yields falling |
| FX | CHF & JPY gaining / USD firm |
| Cross Yen | Mostly declining |
However, markets have moved past the initial reaction and are now in a “wait-and-see” phase.
đź’± USD Weakness Trend Still Intact?
The US Dollar Index (DXY) has only slightly recovered from yesterday’s drop, suggesting no clear trend reversal.
➡ The market structure remains complex: “USD weakness persists” + “temporary risk-off mood.”
📊 Today’s Key Economic Releases
Scheduled during the European and US sessions:
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🇪🇺 Eurozone Industrial Production & Trade Balance (Apr)
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🇨🇦 Canada Manufacturing & Wholesale Sales (Apr)
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🇨🇦 Capacity Utilization (Q1)
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🇺🇸 University of Michigan Consumer Sentiment Index (Prelim) – Expected: 53.6 / Previous: 52.2
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1-year inflation expectations: Forecasted to drop from 6.6% → 6.4%
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🗣 Muted Central Bank Commentary, But…
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The Fed has entered its blackout period – no policy-related comments expected.
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No scheduled remarks from ECB officials.
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Keep a close watch on statements from Trump and officials from Israel/Iran.
đź’ˇ Trade Strategy Note
The focus today is whether risk-on or risk-off sentiment dominates the US session.
Expect sharp market reactions to geopolitical headlines, particularly those from the Middle East or US political figures.
đź“Ś Summary
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Tensions between Israel and Iran are beginning to visibly impact global markets.
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So far, the situation has not devolved into full-scale war, and markets are showing restraint.
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Tonight’s US economic data and geopolitical headlines will guide the next moves.
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Maintain awareness of ongoing USD weakness and bullish momentum in GOLD.
