Economic news was light but market sentiment was boosted by geopolitical news today as the Syrian crisis remains in the headlines. It was announced by Interfax news agency that Syria has accepted Russia’s proposal to put its chemical weapons under international control to avoid a possible U.S. military strike, a proposal which the White House has also agreed to.
In reaction to the news, the safe haven currencies like yen and Swiss franc, as well as gold and oil prices fell. Meanwhile, economic data from China earlier in the day showed the nation is on track for a firm recovery as industrial output increase by more than expected last month.
The Australia dollar was the first to react to the news since Australia and China are major trading partners. AUDUSD bought 92.88 U.S. cents, up from Monday’s close of 92.26 U.S. cents
As geopolitical Syrian induced risk recedes, USDJPY has broken back above the key 100 yen level to a 6‐week high of 100.36 yen going into the U.S. session.
Sterling remains supported near yesterday’s high of $1.5731 after the U.K. RICS house price balance rose to 40 percent, which is the highest level in six years. Any strong economic data raises the chance that the Bank of England will lift interest rates soon.
Euro eased slightly from yesterday’s highs of $1.3280, entering the New York session at $1.3230. News flow was light and there were no key data releases. France did release disappointing industrial production numbers and Italy’s final Q2 GDP was revised down.Publication source