Middle East Conflict Disrupts the Markets.

EUR/Euro: The Euro has held recent gains with currencies settling into Tuesday’s trade after a busy start to the week as markets look to decipher the implications of a protracted conflict evolving in Israel and Palestine.

GBP/Sterling: The British Pound has been making upside progress against the US Dollar and Euro. With regards to GBP/USD, the past 3 trading sessions have produced a gain of about 0.9%. This is marking the best 3-day performance since the middle of July. Recent gains have brought Sterling to the edge of the 20-day Moving Average on the daily chart below.

USD/Dollar: The British Pound opened lower this Monday morning as conflict in the Middle East saw global markets adopt a risk off approach. Naturally, the US dollar received support being a safe haven currency in addition to Friday’s Non-Farm Payroll (NFP) report which beat forecasts highlighting a very robust labor market within the US. That being said, money market expectations for a November interest rate hike from the Fed was little changed and with US CPI scheduled later this week, only a significant upside surprise may shift the needle.

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