Market Sentiment Weakens Amid Growing Geopolitical Concerns
ICM Brokers | Jul 22, 2014 04:22AM ET
EUR/USD
The euro traded steady to lower against the dollar on Monday as investors remained on the sidelines digesting events unfolding in Ukraine and in Gaza. Concerns that tensions in Ukraine could boil even further kept investors camped out in safe-haven dollar positions, especially amid reports that Ukrainian troops were moving in to the rebel-held city of Donetsk only days after pro-Russian separatists allegedly shot down a Malaysian Airline flight with a missile. Meanwhile in the Middle East, Israel pressed on with its ground offensive in Gaza in a conflict that has killed hundreds.
GBP/USD
The pound fell against the U.S. dollar on Monday, as market sentiment weakened amid growing concerns over the outcome of tensions in Ukraine and violence in the Gaza Strip. Market sentiment was hit after the downing of a Malaysian airliner in eastern Ukraine last week and as fighting in Gaza continued. On Monday, some 100 Palestinians and 13 Israeli soldiers had been killed in a nearly two-week military offensive in the Gaza strip. Meanwhile, monitors from the Organization for Security and Cooperation in Europe were granted some limited access to the crash site in Ukraine on Saturday, a day after the organization complained "visibly intoxicated" gunmen blocked their way to the site.
USD/JPY
The dollar edged lower against the safe haven yen on Monday as tensions between Russia and the West mounted and unrest in the Middle East escalated, souring market sentiment. Dollar edges lower against yen, euro steady dollar dips lower against yen, euro steady USD/JPY eased down 0.10% to 101.23, not far from Friday’s one week low of 101.07. Investors remained risk adverse following the shooting down of a Malaysian airliner in eastern Ukraine late last week. The U.S. has accused Russia of complicity in the crash, and European leaders have threatened to impose far reaching new sanctions against Moscow, sparking fears over the impact on global growth. Markets also remained uneasy as fighting in Gaza continued. Trade volumes remained thin on Monday with markets in Japan closed for a holiday.
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USD/CAD
The U.S. dollar edged higher against its Canadian counterpart on Monday, as demand for the safe-haven greenback remained supported by concerns over mounting tensions in Ukraine and in the Middle East. Investors remained cautious after the downing of a Malaysian airliner in eastern Ukraine last week and ongoing fighting in Gaza continued to dominate market attention. On Monday, some 100 Palestinians and 18 Israeli soldiers had been killed in a nearly two-week military offensive in the Gaza strip. Meanwhile, monitors from the Organization for Security and Cooperation in Europe were granted some limited access to the crash site in Ukraine on Saturday, a day after the organization complained "visibly intoxicated" gunmen blocked their way to the site.
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