Bitcoin range-bound amid Middle East turmoil | the trade

Описание: Geopolitical tensions in the Middle East, particularly between Israel, Lebanon, and Iran, are shaping global market sentiment, according to Peter McGuire from Transcom. McGuire observes that the conflict’s escalation has disrupted the Strait of Hormuz, impacting global oil supply and driving up energy prices. He expects ongoing volatility as investors assess the impact on inflation, with surges in US Treasury yields and a stronger US dollar index now trading at 98.55, projecting a potential rise toward the 100.3 mark.

McGuire notes that the US dollar’s upward trend positions it as a safe haven, limiting downside risks in the short to medium term. He highlights sustained momentum in gold and the Swiss franc, both exhibiting upside against the US dollar. McGuire points to likely continued pressure on the Swiss franc versus the euro, with the possibility of a rebound around the 90.22 level.

Turning to equities, McGuire analyses the US 500 index, identifying resistance between 6880 and 6910, with significant technical levels aligning closely. He describes the US 30 as showing similar choppiness, with potential resistance in the mid-49,000s. McGuire expects the German 40 to remain within a tight band and sees Bitcoin and Ethereum (ETH) trading range-bound due to ongoing market volatility.