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.

Economic Calendar

ExpectedPrevious
00:01 GBPBRC Retail Sales Monitor YoY4.3
13:00 EURECB Lagarde Speech
14:30 USDFed Bostic Speech
15:00 USDWholesale Inventories MoM-0.1%-0.2%

*All rates shown are indicative of interbank rates and should only be used for indication purposes only. It is important to note that foreign exchange rates fluctuate and that rates may vary depending on the amount and the base currency that is purchased or sold. Rates are correct as of 8:00am UK time. CentralFX are not responsible for the rates shown.