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IRAQ FALLING? USD RISING

BITCOIN 781.950 11:20 03.12
BitCoin/CNY 5382.550 11:20 03.12
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BITCOIN 782.186 10:20 03.12
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BITCOIN 782.498 10:00 03.12
BitCoin/CNY 5386.325 10:00 03.12
BITCOIN 780.288 09:40 03.12
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By: Adam Stone
June 18th 2014 5:02am GMT, London UK
 
We have been reporting lately that the geopolitical situation, primarily in the middle east, is having a muted effect on the financial markets, but we expect more to come from this part of the world. Binary options traders are waiting for that time to come but US equities and even the USD keep pushing higher. The question is, how is it possible that the S&P climbs higher while the country with the 5th largest oil reserves seems to be taken over by Al Queda insurgents and heading south towards the major oil fields? According to the financial markets, the risk seems to be under control and most analysts are just trying to figure out what is going to actually take the hit on this news.

The fact that oil prices have risen about 5% seems well below what we’d expect the market would ordinarily shift due to such a miserable bit of news. After all, these insurgents are being attacked by Iran, yes the same Iran being fought in one way or another by the US in Syria. Now this Iran is “assisting” the US in muting the insurgents. The dynamic and ever changing situation should create more pressure on the markets and although some believe it could be a more gradual shift, it’s going to happen.

iraq_energy-map2_450

For binary options traders focused on the price of oil, keep in mind that the recent moves upwards may only continue if theories like Yahoo Finance are correct, then the price of Oil will carry on higher in the coming days and weeks. The pressure to the upside, even at a trickle, will likely not abate without a seriously dramatic change in status out in Iraq. Don’t forget, this situation can get much worse too. After all, most military analysts are pointing at Kuwait whereby their oil fields are the real target in all of this. With the US not willing or able to deploy a full force into the region, for both political and logistical reasons, if Baghdad falls, Kuwait is next.

This is the real worrying aspect and is why the USD is on the rise as a safe haven currency in times of trouble. With the price of Oil heading higher at a faster pace, the market is dictating that the real underlying geopolitical pressures are greater than the ability of the market to create such a safe haven. We are of the opinion that the USD will struggle to push much higher. 1.3537 is the local support of interest for binary options traders. A break below this level for the EUR/USD may spell trouble for the EUR and soon thereafter, the 1.3523 level is likely to fall. Look for USD pressure to the upside to be seen and felt across most of the majors.

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Adam Stone
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Adam Stone

As COO of GOptions, my first and foremost goal is to provide traders with the most up to date info from the markets. I have been trading the markets since 2004 and have been involved with stocks, binary options, and forex trading since then. I have had no formal market education and pride myself on a self taught approach to everything related to trading. I try to focus though on both the technical and fundamental aspects related to each trading day and bring forward the most important aspects of risk/reward in the market.
Adam Stone
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