Forex Today: Gold breaches $1,600 after Iran strikes US base, Bitcoin surges, US data eyed

Here is what you need to know on Wednesday, January 8:

Iran fired missiles against US military bases in Iraq, claiming it was a measured response to last week's killing of the top Iranian general. President Donald Trump tweets that all is well and announced a speech later today. Analysts are divided if this attack is a significant escalation or not. 

Gold jumped to above $1,600 but pared back some of the gains. The same reaction was seen in demand for oil and the Japanese yen, which jumped and recovered quickly. The Australian dollar is consolidating previous losses.  

In an incident that seems unrelated but that is adding to tensions, a civilian plane leaving Tehran for Ukraine crashed with 180 passengers on board. 

US ADP Non-Farm Payrolls are due out later today and will provide another hint towards Friday's official jobs report. On Tuesday, the ISM Non-Manufacturing Purchasing Managers' Index beat expectations with 55 points. See US ADP Preview: Labor market expansion is steady

Brexit: EU Commission President Ursula von der Leyen travels to London with chief Brexit negotiator Michel Barnier to meet Prime Minister Boris Johnson. They will discuss the future UK-EU relationship as parliament continues advancing the Withdrawal Bill. Johnson aims to reach a quick trade deal with the bloc.

Eurozone: German factory orders and French trade balance are of interest after investors learned that eurozone inflation accelerated to 1.3% in December as expected. 

Cryptocurrencies have been extending their gains, with Bitcoin topping $8,300 and Ethereum joining the party. 

More Oil prices won't last long at high levels unless the US-Iran standoff delivers another shock