Iran War Politics Shake Markets | USDCAD Near Breakout | Brent & WTI Above $100

In today’s cTrader Market Update, let’s take a look at Forex Trading on NZDUSD, EURUSD, USDCAD, WTI, and Brent Crude Oil.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

This price action gap in Brent Crude and WTI is a direct result of Donald Trump calling the latest Iran proposal “Totally unacceptable.”

This is how the markets react to any major weekend news.

In this case, any geopolitical threats or uncertainty affect certain assets, and, in the case of the Iran war, the price of oil.

So, when the markets opened Monday morning, prices rose for a full 8 hours, giving us some great opportunities.

Once everyone calmed down, prices fell, as we can see from these bear candles.

But just yesterday, the White House declared the Iran war ceasefire to be “on life support,” causing lots of volatility.

Both Brent and WTI are at or over $100, and the spread is back to $9 so, we expect any good news from either side, especially good news about the Strait of Hormuz, to see prices falling.

However, as we know, anything can happen, so be careful with your risk management.

If we move into the 1-hour chart, we see an overbought stochastic oscillator and a rising wedge, both bearish indications.

But, again, be careful and watch the news.

Usually, we like to trade a stronger CAD when the price of crude rises but that hasn’t happened this time.

We got a bit of a price action pullback yesterday, which drove price into a technical long situation, approaching resistance, but overall, most CAD pairs are showing CAD weakness.

Here is why.

Last week, we mentioned that US and Canadian employment data were coming out at the exact same time.

This is a normal situation, and traders had the perfect storm with good US data, with the Non-Farm Payrolls much higher than predicted and the Canadian corresponding figures much lower than predicted.

To add insult to injury, the Canadian unemployment rate was 2 points higher than predicted.

If we look back at the 30-minute USDCAD chart, we see the results of the duelling employment figures, then, yesterday, the news regarding the Iran war.

But, before we get too excited about strong USD data, we see Average Hourly Earnings lower than expected.

The Fed will be watching this, as this can be a key factor in inflation.

Speaking of the Fed and inflation, this afternoon we will all be watching the US CPI figures.

I also promised, last week, that we would look at the US Senate Fed Chair Nomination Vote of Kevin Warsh.

However, they are now saying that the vote will be held sometime this week, so watch the news, as the Iran situation will likely move the markets more than this.

We see USD is continuing to weaken, but if inflation continues, we may see a reversal or two.

We see rising wedges on EURUSD and NZDUSD, and I encourage you to check the price action on all USD pairs.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk