The Yen was the winner of the session, seeing some major risk-off flows towards it after the Middle East attacks as markets went towards the most “value” risk-off currency, particularly as technical tops (in ) were right around.
Meanwhile, some of the moves in the have been undone by some heavy selling after Israel attacked Syria amid some rising tensions between Druze-Militias and the Syrian Government Forces.
It seems that a ceasefire has currently been reached, calming the tensions. This is, however, a story to follow for the upcoming days.
US Producer Price Index data () had been released just before the intensification of the Middle East turmoil and had previously led to some more USD buying. The report was pretty positive as came out unchanged vs a revised + 0.3% release from last month and a 0.2% rise expected.
FED Chair Jerome Powell’s speech is at the bottom for those interested.
A Bizarre Reaction from the US Dollar at the Attacks
Source: TradingView
After reaching its top, the huge selling candle touched 97.71, down at one point 1.15% before reverting higher.
Other markets cared much less about the headlines, particularly US Indices, which have all risen yesterday even after some heavy flash selling.
Daily Cross-Asset Performance
Source: TradingView
The story repeats, and is again the best performer of the day, up close to 12% at one point – It’s closing the session still up around 11%, touching highs of $3,425.
Apart from that, equities rose after a volatile session due to the factors mentioned in the intro, and the USD was actually the worst performer of yesterday’s session.
A Picture of Performance for Major Currencies
Source: OANDA Labs
Earnings Season: Who Is Releasing Their Numbers Today?
Source: Nasdaq.com
Expect earnings from the TSM (Taiwan Semiconductor Manufacturing (NYSE:)), Netflix (NASDAQ:), Abbott (NYSE:), and Pepsico (NASDAQ:).
A Look at Economic Data 
MarketPulse Economic Calendar
The North-American Session should be dynamic between the and might also be shaken by an army of FED Speakers.
It’s always good to check out what the has to say around this time of the cycle, as despite just providing more ideas on Cuts and Hikes, you can also observe how they envision the impact of tariffs (They’re fairly good economists, I would say).
And for JPY Traders, don’t forget the Monthly report, which may add just more volatility to USD/JPY and other Yen-focused pairs – Any major beat should trigger some anticipated reactions from the Bank of Japan.
Safe Trades!
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