Israeli missile shows the nervousness in the Forex Market
An Israeli missile has demonstrated today as the markets are nervous because of the impending conflict in Syria.
Syria as suspected target
The Russian news agency Ria Nowosti had reported, citing the Russian Defense Ministry, to launch two "ballistic objects" in the Mediterranean to the east. Since in this direction is the Syrian coast, was quickly assumed that this is the possible target of the missile and the conflict is gone in the hot phase. A short time later it was reported that the missile is gone down in the Mediterranean.
Yen and Swiss Franc gained abruptly
Immediately after the announcement of the launch of the missile, the JPY and CHF showed a reversal of the falling trend until then and could offset a large part of their current losses in a short time, while the emerging markets declined. This lasted as long as was explained by the Israeli side, they have to test a defense system launched two missiles, which came down as planned in the Mediterranean, without aim. Immediately after establishing the facts of, the market turned back to the previous direction and now has nearly recouped the losses.
Reactions in an escalation were considerably
Even if the event on based on a misunderstanding, or an unclear position based news, but one thing was clear. The crisis in the Middle East is being watched by the financial markets with great nervousness. Already the unsecured reporting of a potential attack against Syria sparked the escape from currencies with greater risk involved into "Safe Haven" currencies like the Japanese yen and the Swiss franc. Against this background, the mood in the White House and the U.S. Congress should be closely observed least because every possible indication of an imminent escalation might trigger a similar or stronger response.
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