Pound weakens against US Dollar as safe haven demand rules the markets

Published: Tuesday, 27 August 2013 10:00 BST - Written by David Woodsmith

STORY LINK Pound weakens against US Dollar as safe haven demand rules the markets

The Pound weakened against the US Dollar and softened against the Euro as investors take a risk off approach in today’s session. The threat of military intervention in Syria has caused the markets to seek safety in currencies such as the ‘Greenback’ and Japanese Yen.

Speculation of military intervention increased on Monday after Secretary of State John Kerry said that Washington had additional information about the attacks and said that the US government would release the details to the public over the next few days.

"What we saw in Syria last week should shock the conscience of the world. It defies any code of morality," Mr Kerry said at a news conference on Monday.

"Make no mistake, President Obama believes there must be accountability for those who would use the world's most heinous weapons against the world's most vulnerable people."

The US has also heightened its naval presence in the eastern Mediterranean suggesting that air strikes against Assad’s regime could begin in the very near future. Military leaders from the US and their allies are gathering in Jordan to discuss any actions.

Concerns are growing that any military action in the region could escalate into a wider conflict with the Russians, staunch allies of Assad, saying that any action would have dire consequences.

Sterling weakened against the Euro after data released from Germany showed that the region’s largest economy continues to improve. The ifo German business climate index rose to a 16-month high in August.

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