In the video, I also tried to explain that the U.S. Dollar Index is likely to move higher. As we approach the weekend, investors tend to look for safety, and many simply move their capital into the U.S. dollar.
Due to the Iranian conflict, the price of oil has increased by more than $10, and this rise has now continued for four consecutive days. At the moment, there are no clear signs that the conflict will be resolved before Friday, which means the market is increasingly pricing in uncertainty and risk.
We all know that weekends carry additional uncertainty, since geopolitical developments can occur while markets are closed. For this reason, many investors reduce risk exposure and move their capital into safer assets.
The increase in oil prices is now starting to be reflected in the strength of the U.S. dollar. This is a basic market mechanism, although we will not go into the full explanation here.
It is important to emphasize that this post is not aimed at semi-professional or professional traders, but rather at those who are very new to the markets and may believe that volatile conditions create easy profit opportunities.
Unfortunately, if you are currently trading silver, gold, or equities, you may have entered the market during a potential macroeconomic shift.
This could turn out to be only a short-term macro move, and it may not last long. However, if the conflict escalates, we could see rapid shifts across multiple asset classes.
Due to the Iranian conflict, the price of oil has increased by more than $10, and this rise has now continued for four consecutive days. At the moment, there are no clear signs that the conflict will be resolved before Friday, which means the market is increasingly pricing in uncertainty and risk.
We all know that weekends carry additional uncertainty, since geopolitical developments can occur while markets are closed. For this reason, many investors reduce risk exposure and move their capital into safer assets.
The increase in oil prices is now starting to be reflected in the strength of the U.S. dollar. This is a basic market mechanism, although we will not go into the full explanation here.
It is important to emphasize that this post is not aimed at semi-professional or professional traders, but rather at those who are very new to the markets and may believe that volatile conditions create easy profit opportunities.
Unfortunately, if you are currently trading silver, gold, or equities, you may have entered the market during a potential macroeconomic shift.
This could turn out to be only a short-term macro move, and it may not last long. However, if the conflict escalates, we could see rapid shifts across multiple asset classes.
Trade active
If Iran capitulates, everything I have said becomes immediately invalid. Keep that in mind.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.