US Session – Syrian crisis boosts yen and gold, while oil rises
August 27, 2013 8:54 pm
Markets do not like uncertainly and this has been evident on Tuesday with alot of investors being cautious and putting their funds into safe haven assets like the yen and Swiss Franc. Precious metals like gold and silver also rose.
The biggest risk dominating the markets today was geopolitical headlines with regards to turmoil in the Middle East and a possible military action in Syria.
U.S. Secretary of State John Kerry said on Monday the U.S. would hold the Syrian government accountable for using chemical weapons against civilians in rebel-held areas.
The VIX volatility index rose 12 percent today, showing just how jittery markets are today, as the Dow took a triple digit dive. Currency markets were also on edge.
Yen gained sharply against the dollar, with USDJPY tumbling to a low of 96.97 yen, down 1.5 percent on the day. The Japanese currency is perceived as a safe haven in times of financial turmoil.
EURJPY also fell, reaching as low as 129.83, down 1.3 percent on the day.
EURUSD had choppy day, see sawing 75 pips both ways. In the U.S. session the pair recovered back to near prior highs hitting $1.3398. Strong German Ifo data is helping support the euro.
The Swiss franc, also a safe haven, gained against the dollar, with USDCHF falling from a US session high of 0.9170 to a low of 0.9227.
Gold rose to a near 3-month high of $1,423.52, a high not seen since June 6 and ended the day with a gain of around $12.
Crude Oil rose as a result of the Syrian crisis, rising to $109.29, up 2.4 percent on the day.
Markets do not like uncertainly and this has been evident on Tuesday with alot of investors being cautious and putting their funds into safe haven assets like the yen and Swiss Franc. Precious metals like gold and silver also rose.
The biggest risk dominating the markets today was geopolitical headlines with regards to turmoil in the Middle East and a possible military action in Syria.
U.S. Secretary of State John Kerry said on Monday the U.S. would hold the Syrian government accountable for using chemical weapons against civilians in rebel-held areas.
The VIX volatility index rose 12 percent today, showing just how jittery markets are today, as the Dow took a triple digit dive. Currency markets were also on edge.
Yen gained sharply against the dollar, with USDJPY tumbling to a low of 96.97 yen, down 1.5 percent on the day. The Japanese currency is perceived as a safe haven in times of financial turmoil.
EURJPY also fell, reaching as low as 129.83, down 1.3 percent on the day.
EURUSD had choppy day, see sawing 75 pips both ways. In the U.S. session the pair recovered back to near prior highs hitting $1.3398. Strong German Ifo data is helping support the euro.
The Swiss franc, also a safe haven, gained against the dollar, with USDCHF falling from a US session high of 0.9170 to a low of 0.9227.
Gold rose to a near 3-month high of $1,423.52, a high not seen since June 6 and ended the day with a gain of around $12.
Crude Oil rose as a result of the Syrian crisis, rising to $109.29, up 2.4 percent on the day.
Related Posts: