Safe havens on the rise as strike on Syria looms

FXstreet.com (Edinburgh) -The exodus towards safe havens is extending on Tuesday, as the imminence of a US-led military intervention in Syria is picking up pace. The unease surrounding the region is swelling as minutes pass by, amidst increasing warnings from both China and Russia about the unpredictable and catastrophic consequences of an attack, and the back-and-forths about the ultimate existence of a chemical attack by Syrian forces loyal to Assad’s regime. Earlier on this morning, US Defence Secretary Chuck Hagel told the media that American forces are ready to launch at attack over Syrian territory – missiles strike – with only US President Obama’s order needed.

Around the markets

Stock markets across the board continue to trade on the back foot. Commodities are also showing increasing distress, pushing the barrel of crude WTI to the $110 level and the ounce troy of gold quickly left behind the $1,400 threshold, returning to a bull market. In the FX markets’ sphere, safe havens CHF, JPY and USD continue to advance against their risk-associated peers. Of note is the GBP/USD retreating to sub 1.5500 levels, EUR/CHF testing fresh lows around 1.2280 and the USD/JPY surrendering the recent upside to levels below 97.00 the figure. The EUR/USD keeps its recent resilience in the 1.3370-1.3400 band although lacking the vigour to trespass the critical resistance so far.