Jordan imposed a state of emergency in all regions over Iran’s attack on Israel, and temporarily closed airspace, local media claimed.
Iraq and Syria will not disrupt the flights of Iranian drones and missiles.
Syria prepares to repel an attack from Israel.
Jordan opens its airspace to US and Israeli air forces and declares emergency
We are approaching the War Trading Conditions.
If you thought that Data and FOMC/ECB rate decisions are dangerous times to trade, compared to the fully blown war in Gulf – think twice.
Be prepared to lift your risk management to all new levels.
Why ? What’s so different between this developing crisis and the recent ones, like Ukraine , Gaza ?
Now we are facing the possibility of a war that would spread all over the Middle East , and would pull in all the Major players on the planet.
USA has to stand with Israel directly , Russia will support Syria and by proxy Iran ( for starters ) , EU will find itself in the middle of nowhere , and China will have more or less free hands to do whatever and wherever they like it .
Very complicated relationships within the Arab peninsula will worsen , and everyone will run for a cover of a bigger Ally ( if not for the real stance, then for the security of the group )
Price of Oil will Sky rocket.
Once the Oil starts dancing , there goes USD leading the party.
Last time it happened, we have witnessed crazy moves, based on rumours , news alerts and hysterical run for safe haven currencies . USD was a leader of course.
Media will use this opportunity to spread panic, their own agendas , and it will go as far as finding individuals in the field that will tip every single move of the warships, every aircraft attack and every bomb dropped .
If you think that I am over exaggerated, you are wrong. I still remember one guy from the major dealing desk that had a brother on the airplane carrier , who tipped him of whenever the squadron was ready to attack ( Iraqi war ) , so he could place orders accordingly. Later on even CNN got a whip of it and started reporting in real time “from unknown sources “ .
Of course, as the war continues, it all becomes “old news” and unless something really big happens, markets are back to their usual .
However, because of the Oil , it’s price and sudden problems of delivering it , nothing will play out as it use to.
If you trade smaller time frames, based on technical views , you should be just fine.
Adopt current conditions and apply them to your systems .Stop losses have to be bigger, but Profit expectations as well – so Reduce your Leverage to at least half.
Do not jump on every single news – lots of it will prove to be the garbage / fake / speculation.
Use the old Adage – Buy the Fact – Sell the Rumour
Avoid Exotic currencies and those of lower Liquidity.
Very soon it will be clear what would be the Safe Haven ( be it a currency, metal, or whatever) – run with it.
Do not take sides – today the winner might be the sore loser tomorrow .
So, I have warned you – I don’t know is this newest Crisis going really to play out as I pointed up there, but it does smell like it right now .
Be prepared and informed.
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