The US dollar has shown trends in a constant increase in the main currencies such as Euro and Yen, at a time when the conflict in the Middle East is growing. When Israel began an attack against Iran, with the expected retaliation, the US dollar remained strong and, according to Reuters report, won 0.3% to 143.88 against Japanese yen and 0.1% to 0.8110 franc against Swiss currency.
Israel and Iran are currently stuck in a large geopolitical conflict, while the United States is beginning to move their military resources in the Middle East. Israel launched firing over Iran on Friday and attacked nuclear facilities and missile factories, which has worsened things between countries. Iran is expected to be a retaliation from Iran.
Dollar Delivery via Geopolitical Crisis in the Middle East
“Historically, with these kinds of geopolitical events you get a reaction to the knee market from the market … History tells us that many of these things will look,” said Jack Janasiewicz, portfolio manager, Natixis Investment Managers.
“There are several things worth emphasizing. How long does this operation take? The longer it goes, the worse will get for trust, and it will eventually weigh the market,” Jack continued.
“This (Israel-Iran conflict) landed on us, but the main problem remains tariffs and obstacles in global trade,” said Juan Perez, director of trading in Monex USA.
“If you have a really physical situation and the potential for prolonging the armed conflict and escalate, the US dollar and the golden jump to the asset assets. It’s a bit of a psychological reaction,” Perez continued, according to Reuters.
Perez also said it was difficult to fix each individual item that was struggling this year and crushes the ability of the US market to believe in the US dollar.
(Tagstotranslate) US DOLLAR (T) US DOLLAR MATS (T) DOLLAR (T) Euro
