US futures erase the earlier drop from Israel-Iran fears

At the low earlier, S&P 500 futures were down by roughly 1.7%. It is now down just 0.4% as European markets open for trading. The improvement in the mood owes much to the fact that Iran has downplayed the attack from Israel. And also that they won’t retaliate, at least not immediately.

That is seeing a turn in the mood in FX as well. EUR/USD is back up to flat levels at 1.0645 while GBP/USD is off its earlier low of 1.2405 to near 1.2440 in the past hour. AUD/USD has also pared most of its decline from earlier to be down just 0.1% at 0.6415 currently.

But with the weekend approaching, are traders bold enough to place their bets on risk trades going into next week? That still has the potential to temper with the overall market mood a little later in the day.

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