Oil is moving higher – watch out for the Middle East weekend risk premium

<p><a href="https://www.forexlive.com/news/forexlive-asia-pacific-fx-news-wrap-usdjpy-has-a-close-look-at-150-20231020/" target="_blank" rel="follow">Going into the previous weekend I pointed out</a> that traders are wary of a Saturday or Sunday ground war breakout in Gaza. </p><p>The signals we've been getting all week are that the ground war move has been delayed, but it's a bit of "they would say that wouldn't they" that could be going on. </p><p>If there are moves on the ground into Gaza a market ‘flight to safety/liquidity’ response should play out. If it happens over the weekend professional markets will only get a chance to respond come Monday morning, hence the Friday pre-emptive moves to provide some cover. </p><p>Something to be aware of. </p><p>USTs update:</p><p>USTs catch a bid in response to geopolitical turmoil. On this chart (of yield) that means the candles fall. As the price of USTs rise the yield drops and vice versa. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.