Escalating conflict around Syria led to the growth of defensive assets

28 August, 2013

Escalating conflict around Syria led to the growth of defensive assets such as the yen, franc and gold; and to escaping from risky currencies such as AUD, NZD and also currencies of developing countries. Daily decrease of the euro Vs the yen on Tuesday turned out the lowest for past eight weeks. The dollar also lost about 1.5% Vs yen having reached the lowest level against Japanese currency for seven days. Swiss franc took the second honorable place in Tuesday leaders rating.

U.S. Secretary of State, John Kerry said on Monday that there was an incontestable evidence of using chemical weapon by Syrian authorities against the rebels, which may serve a motive for military intervention into the country. According to some reports a military operation against Syria may start on Thursday already. The Pentagon has announced its readiness to the military operation in Syria. 

The dollar fell on Tuesday against most major currencies except AUD and NZD having no reaction towards US Consumer Confidence growth while it was expected to drop. US Consumer Confidence rose up to 81.5 p. in August Vs 79 p. Consensus. Prior month reading was revised upwards from 80.3 p. to 81 p.

Richmond Fed Manufacturing Index also maintained to +14 in August Vs July reading -11, which has become the best result since April, 2012.

The euro also ignored at first good business confidence statistics in Germany and decreased but then recovered that loss. IFO Business Climate grew to its high for 16 months – 107.5 p. while a growth to 107 p. was expected. The index has been growing for four months in a row. Current Assessment has risen to 112 p. from 110.1 p. in July. IFO Expectations also exceeded the forecast having grown to 103.3 p. against 102.4 p. prior month.


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