USD stronger against GBP/EUR/AUD/NZD on safe haven demand

Published: Wednesday, 28 August 2013 16:00 BST - Written by Toni Johnson

STORY LINK USD stronger against GBP/EUR/AUD/NZD on safe haven demand

The US Dollar is trading higher against the majority of its most traded peers as concerns over the possibility of a US led military attack on Syria continued to boost demand for safe haven currencies.

Demand for the safe haven ‘Greenback’ and Japanese Yen rose after indications that the US is bent on launching an attack on the Assad regime which is accused of using chemical weapons against civilians.

The UK has drafted a resolution to the United Nations to try and win international support for such a strike, a move that the Russians and Chinese are likely to veto. The resolution is thought to condemn the use of chemical weapons and to ‘authorize necessary measures to protect civilians’.

Concerns and uncertainty over such action is building across the world as the vast majority of the public in both the UK and US is staunchly opposed to intervention and with the Russians and Iran both warning of dire consequences if an attack occurs raises the prospect of the situation quickly escalating into a wider conflict.

The Syrian regime has staunchly denied the claims that it used chemical weapons with the country’s deputy foreign minister telling reporters ; “We repeat that the terrorist groups are the ones that used chemical weapons with the help of the United States the United Kingdom and France, and this has to stop.’ Ominously he added; “This means these chemical weapons will soon be used by the same groups against the people of Europe.”

The US Dollar shrugged off data showing that pending home sales fell more than forecast in July. Sales fell by -1.3% compared to the previous month’s figure of -0.4%. Economists had expected a reading of 0.0%.

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