MIDDLE EAST TENSION AND OIL PRICES MOVED FOREIGN EXCHANGE MARKETS‼️
There was activity in the foreign exchange markets on the morning of August 5. Rising tensions in the Middle East and fluctuations in oil prices affected the value of currencies. The Swiss franc rose on safe-haven demand, while the Canadian dollar gained value ahead of the open of oil futures. The US dollar traded in Sydney markets lost value against the G-10 main currencies.
The US dollar fell 0.1% against the Canadian dollar to 1.3860 and fell 0.1% against the Swiss franc to 0.8583, making it five consecutive days of decline. The Australian dollar increased by 0.1% to 0.6519 against the US dollar, while the US dollar increased by 0.1% to 146.66 against the Japanese yen.
Experts state that these fluctuations in foreign exchange markets are directly related to geopolitical developments in the Middle East and movements in energy markets. Forex analyst James Harland says, “The weakening of the US dollar has led to the appreciation of different currencies due to investors turning to safe havens and developments in energy markets.”
Result: Tension in the Middle East and developments in energy markets directly affect foreign exchange markets, causing investors to move between currencies. Such situations increase uncertainty in the markets and require more careful monitoring.