You are here: Home > articles > Forex > Dollar, yen receive support amid tense geopolitical situation in Middle East
Dollar, yen receive support amid tense geopolitical situation in Middle East
October 9, 2023 1:22 pmVideo
Latest News
- Analysis for GBP/USD on April 16th. The pound should not count on support from Powell April 16, 2024
- Analysis for EUR/USD on April 16th. The southern trend has been put on pause for correction April 16, 2024
- USD/JPY: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- GBP/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- Trading Signals for GBP/USD for April 16-18, 2024: buy above 1.2405 or 1.2450 (21 SMA – 0/8 Murray) April 16, 2024
- EUR/USD: Simple trading tips for novice traders on April 16th (US session) April 16, 2024
- AUD/USD: Australian dollar remains under pressure April 16, 2024
- GBP/USD: trading plan for the US session on April 16th (analysis of morning deals). The pound was quickly bought back around April 16, 2024
- Trading Signals for BITCOIN (BTC/USD) for April 16-18, 2024: buy above $62,500 (4/8 Murray – 21 SMA) April 16, 2024
- Technical Analysis – USDCAD blossoms ahead of central bank speeches April 16, 2024
- EUR/USD: trading plan for the US session on April 16th (analysis of morning deals). Fewer people are willing to sell euro April 16, 2024
- EUR/USD. April 16th. Bears continue to advance against the backdrop of strong US statistics April 16, 2024
- Euro, sterling extend weakness April 16, 2024
- GBP/USD. April 16th. British statistics didn’t capture traders’ attention April 16, 2024
- Technical Analysis – EURCHF ticks up after strong losses April 16, 2024
- Technical Analysis – JP 225 index tests crucial support zone April 16, 2024
- Market Comment – Stocks slide, dollar soars as rate cut bets take another hit April 16, 2024
- Forex forecast 04/16/2024: EUR/USD, USDX, Gold and SP500 from Sebastian Seliga April 16, 2024
- GBP/USD: trading tips for beginners for European session on April 16 April 16, 2024
- EUR/USD: trading tips for beginners for European session on April 16 April 16, 2024
Safe-haven currencies, the U.S. dollar and the Japanese yen, rose on Monday as violence in the Middle East rattled the markets. The Israeli shekel fell by more than 3% early in the Asian session, almost reaching an eight-year low.
The Bank of Israel announced that it would sell foreign currency worth up to $30 billion in the open market to maintain stability.
Market sentiment shifted after Israeli forces clashed with militants from the Palestinian group Hamas over the weekend, an event not seen in Israel in the past 50 years. This held the Japanese yen, a traditional safe-haven currency, in demand, causing the risk-sensitive Australian dollar to drop by nearly 0.8%.
As expected, there is significant uncertainty in the markets this morning. Where there is a flight to safety, the U.S. dollar will remain in demand. The yen will also receive additional support.
In other countries, the U.S. dollar also gained overall, causing the British pound to fall by 0.31%. The euro lost 0.32%. The Australian dollar, seen as an indicator of risk appetite, fell by 0.59%, and the New Zealand dollar dropped by 0.36%. Demand for the U.S. dollar persists as a safe-haven.
Another rate hike by the end of the year is possible. However, market prices indicate that the probability of the Federal Reserve keeping rates unchanged at the November meeting is approximately 78%.
The table above shows the percentage change in the U.S. dollar (USD) exchange rate against major currencies today. The U.S. dollar exhibited the most weakness against the New Zealand dollar.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: