The week in financial markets has been characterized by prudence because of the news which arrived from the Middle east. A group of countries, saudi Arabia, United Arab Emirates, Egypt and Bahrain) have in fact broken off all diplomatic relations, and the relationship with Qatar. The motivation is in the attitude of the country regarding terrorism, especially in the relations of the country peninsular with Iran. The news has clearly had a big impetto markets, triggering purchases on safe haven assets including gold and the yen, while european markets have turned downward. Were so wrong-footed those who thought to have found.
The movements of the financial markets
As regards the commodities market, obviously, the first impact it has had on the oil market. The prices of the crude oil contracts are, in fact, splashed to the top with the Brent stabilizes at 50.20 $/barrel and the WTI-to-48.00 $/barrel. However in view of the uncertainties growing to envelop the market, the markets still remain very cautious. Us meanwhile, we continue to suggest to adopt only.
However, it should be remembered that this week, traders are focused on the upcoming elections in the United Kingdom, that on Thursday, may redraw the contours parliamentarians in Westminster. This would give an impression of important negotiations on the Brexit. The british prime minister Theresa May has lost a good part of the advantage that he was a month ago.
Watching to the pound, it should be emphasized that the terrorist attack on London on Saturday evening has no influence on the cross with the dollar. In these days, the pair remains firmly anchored in the range between 1.2850 and 1.29. But it is clear that all are waiting for what will happen on Thursday, for which it is clear that at the time the caution on markets make them rather interlocutors.
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