Middle East tensions are escalating

Daily Analysis - 18/06/2019

The U.S is considering supporting the area with additional 1000 troops


After the last week’s attacks on two oil tankers in the Gulf of Oman, the U.S is planning to transfer many troops to the Middle East due to the escalating pressures between the United States and Iran.

On Monday the Acting Secretary of Defense, Pat Shanahan in a statement said that “I have authorized approximately 1,000 additional troops for defensive purposes to address air, naval, and ground-based threats in the Middle East,” “The recent Iranian attacks validate the reliable, credible intelligence we have received on hostile behavior by Iranian forces and their proxy groups that threaten United States personnel and interests across the region.” There are no more details regarding the deployment time.

U.S. stock index futures mixed

On Tuesday morning the U.S. stock index futures remained mixed, while investors wait for the first day of the FED interest rate gathering.

Early in the morning, Dow futures dropped 25 points, registering a negative start. It went down more than 15 points. NASDAQ and S&P were looking in opposite directions. Now the Market attention is mostly adjusted to the U.S. central bank, and wait for the start of the two-day meeting later on Tuesday. The FED is probably going to leave interest rates fixed, notwithstanding the new orders from President Donald Trump to lower interest rates.


AUD dropped to its lower level since January

On Tuesday the Australian dollar slid to its weakest level since the beginning of the year following the country's central bank signaling an additional rate reduction. The fall came while the GBP was restrained by increasing concerns of a Brexit without a deal.

The RBA minutes propelled a fall for the Aussie sending it to $0.6830. Its weakest level since the flash crash of early January.

The GBP fell to a more than 5-month low of $1.2530 on Monday and last exchanged at $1.2529


Second day of declines for Oil

Tuesday is the second day that Oil is falling after further indications that global economic growth is weakening. The reason is the continuing trade tensions between the U.S. and China. Although damages were restricted amid pressures in the Middle East. U.S. WTI crude futures fell 12 cents, or $51.90 while Brent crude futures dropped 16 cents, a barrel.


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