The US dollar gained strength after Israel’s military actions against Iran’s nuclear and military facilities. This situation also caused US yields to rise—a rare event. Current US yields show slight increases: – **2-year yield:** 3.911%, up 0.6 basis points – **5-year yield:** 3.962%, up 0.4 basis points – **10-year yield:** 4.359%, up 0.2 basis points – **30-year yield:** 4.846%, up 0.3 basis points US stocks started lower but stabilized: – **NASDAQ:** down 1.13% – **S&P index:** down 0.90% – **Dow industrial average:** down 1.0% Crude oil prices jumped by 7.95% to $73.45. Gold rose by $37, or 1.1%, reaching $3423.56. However, Bitcoin saw a slight drop, falling by $600 to $105,121. The video further explores the EURUSD, USDJPY, and GBPUSD currency pairs from a technical perspective. This analysis offers insights into market feelings and risks, which may help lessen the impact of current geopolitical tensions on trading. What we see is how external events can quickly affect multiple asset classes. The US dollar rising after military strikes is a common reaction, reflecting its status as a safe asset in uncertain times. Interestingly, bond yields are rising even with increased risk avoidance, which is unusual. Typically, during such geopolitical events, investors flock to treasuries, leading to lower yields. The slight rise in yields suggests that there is more than just a focus on safety; investors might be anticipating inflation or changes in future interest rates. The yield curve, particularly between two and thirty years, is relatively stable. However, these increases prompt us to consider the impact on bonds sensitive to duration. Even minor changes, like half a basis point, can significantly affect leveraged positions. Although the shifts are small, they are more significant in this environment. Equity indices fell together, led by technology stocks. All major US equity benchmarks dropped consistently but without panic. This suggests a rotation rather than a withdrawal. Investors didn’t completely flee to cash; instead, they repositioned based on shifting costs and risks. The synchronized drops across indices indicate a broader reassessment, not isolated weakness. Commodities told a similar tale; oil prices soared nearly 8%. This is expected with tensions in the Middle East, as it raises concerns about supply disruptions. The increase in oil prices pushes forward contracts much higher than usual, making risk management for hedging more challenging until prices stabilize. The rise in gold was anticipated, but a $37 increase is significant, indicating a shift in sentiment rather than just a typical move to safe assets. If this trend of investing in physical assets continues, it may slow growth in related sectors due to limited capital. In contrast, Bitcoin’s slight decline shows its evolving role. The drop suggests it is becoming more of a speculative asset rather than a safe haven, reacting like high-risk stocks in a tough environment. This indicates that there hasn’t been a complete flight from risk, even with overall market anxiety. Regarding foreign exchange, the video mentioned focuses on technical analysis for key USD pairs. Analyzing these charts reveals more than just directional trends; it helps confirm trader behavior. Traders buying USD through EURUSD and GBPUSD consider interest rate differences, but geopolitical factors shape these trades, influencing their risk outlook. It’s worth noting that pricing has remained orderly. This is a positive sign. Even with military tensions disrupting economic calm, market mechanisms aren’t amplifying stress through feedback loops. Thus, today’s reactions seem measured and intentional. This is crucial when balancing leverage and implied volatility. The key is to use these small fluctuations as an advantage, avoiding impulsive moves based on headlines. As the week progresses, there may be pressure to widen hedges or adjust strategies. However, right now, maintaining tighter ranges with steady adjustments seems more suitable. We expect more data and policy updates soon. Bonds may react again, influenced by shifts in equities or oil, or currency pairs might test yesterday’s levels. Ultimately, understanding how trading desks reorganize their positions is vital. There’s likely to be a temptation to widen spreads to navigate volatility better. But timing these changes carefully can prove more beneficial than waiting for another trigger. While we aren’t in crisis mode, we remain exposed enough to see sharp reactions from even minor events.

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