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Currency Market Analysis

Jan 06, 2020 | Currency Market Analysis

Global Themes

USD higher on “safe haven” buying as Iran strike spooks markets

The US dollar was stronger on Friday after a US drone strike on an Iranian military leader sparked fears of an escalation in the volatile Middle East.

Qassem Soleimani, a senior member of the Iranian military and widely seen as Iran’s chief architect of resistance to US influence in the region, was killed on Friday after a week of growing tension between the US and Iran.

The new week has started with renewed concerns as US President Donald Trump warned the US military is targeting 52 sites across Iran.

Big fall

In other markets, most currencies fell versus the US dollar.

The euro weakened as it continued last week’s falls from six-month highs.

The British pound was also weaker as poor UK data continued to illustrate the strain of Brexit on the British economy.

US jobs due

The focus in this week’s early trading will be on key activity updates with Chinese, German and US non-manufacturing PMI numbers due today.

Unlike the manufacturing numbers, the non-manufacturing, or services numbers, have held up relatively well over the last year.

US non-farm employment, due on Friday, will be the week’s major announcement.

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