Markets needed a reason to move on and they got one

This brings back that whole familiar Russia-Ukraine feeling. As I’m typing this, the IDF has continued to identify a fourth wave of missiles launched from Iran towards Israel. So much for a ceasefire, eh? However, markets aren’t really perturbed by any of this – at least for now.

Even last week already, we’ve seen that markets have been wanting to move on from all the drama in the Middle East. That before Trump decided that he wanted the US to intervene. And now when we see that Iran isn’t going to respond forcefully and harshly, there’s expectations for things to settle down.

The most important thing for markets is that the politics are putting on a facade that things are de-escalating. Trump, as always, made a big deal out of that here and even if there’s still attacks ongoing, markets won’t likely respond too much unless we see significant escalation again.

It’s a case of déjà vu with the whole conflict between Russia and Ukraine setting the example. The battle continues there and the battle will continue here as well in the Middle East. A ceasefire announcement won’t stop the war but all it serves is a checkpoint for markets and global media to move on from this.

The world we live in now is all about chasing the next story and in a week’s time, no one would bat an eye on the situation here even if it remains the same as it is now. It’s a cruel world and markets are just as cold. We trade conflict one day and greed the next.

And that’s what is going to happen here as the reactions to the geopolitical tensions in the past two weeks begin to fade.

This article was written by Justin Low at www.forexlive.com.