Good Day,

Dreadful geopolitical news dominates the markets with most of the bourses negative through Asia and Europe. Not to be-little the Israeli/Gaza situation, but the shooting down of a civilian aircraft that clearly shows a commercial identity beacon, operating in a clear flight path on commercial  flight corridor opens up a can of worms that takes terrorism to new levels way beyond the 9/11 scenario. The ramifications of this leap in terrorist available activity will be with us for some time to come. How commercial jet call-sign identifications and flight-paths are set out moving forward will take several days to shake out.

Fundamentally the strain on the USA / Russian / European relationships will be tested further and China distanced itself from MH17 immediately.

Overnight the markets shrugged off the news very quickly and we have tight trading ranges in EUR/USD (23 pips), GBP/USD ( 34 pips), USD/CHF (12 pips), AUD/USD ( 54 pips), NZD/USD ( 44 pips) and USD/CAD ( 24 pips).

Looking ahead to-day, I would imagine anyone long the EUR/USD based off 1.3500, would be buying shares in "Andrex" and it would not surprise me if the EUR/USD dropped through 1.35000 as longs exit not wanting to be holding the single-currency through the weekend.

AUD/USD support at 0.9320 is holding as it NZD/USD 0.8675. The big move overnight is AUD/NZD this pair has recovered a huge amount of pips this week. The overall move was from around 1.0640 to 1.0820 (180 pips).

I am not looking to exit any LIVE TRADES or cancel any LIMIT ORDERS in place.

I am not looking to add any fresh positions today given the news and the fact that it is a Friday.

Be careful today, events could move on a piece today and affect the USD.

Scott