 Significant volatility was seen in Asian session, following the news of Israel's missile strike in retaliation against Iran. This geopolitical development initially led to steep decline in Asian stocks and concurrent surge in oil prices and safe-haven assets like Swiss Franc, Yen, and Dollar. Nevertheless, fund flows started to reverse partially as the situation seemed to stabilize somewhat, as likelihood of immediate further escalation appeared to diminish. Iran attempted to downplay the severity as its state media denied any foreign military presence in their airspace. Temporary flight restrictions that had been placed near the Isfahan military base were also lifted quickly. Meanwhile, Israel maintained silence on the issue, neither confirming nor denying involvement in the strikes. As the day progresses, Swiss Franc, Yen, and Dollar are trading as the strongest currencies, bolstered by their status as traditional safe havens during times of international tension. Conversely, Aussie, Kiwi, and Sterling are underperforming as investors shy away from riskier assets. Euro and Canadian Dollar are situated in the middle of the currency spectrum. But the picture could dramatically alter depending on further developments from the Middle East conflict... |
