What Impact Will Syria have on the Currency Market?

The effects of the Syrian risk are widespread, but Mark Carney's address and housing data from the US will have just as big an impact on the market

Investec FX 28 August, 2013 | 11:20AM
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This article is part of Morningstar's "Perspectives" series, written by third-party contributors. Here, Jonathan Pryor head of FX Dealing for Investec Bank, comments on the effects of Syrian risk.

The risk-off theme in world markets continued overnight as news that military strikes in Syria could begin by the end of the week. The impact on markets has been widespread. With concerns that the unrest may disrupt Middle East oil supplies, Brent in London jumped 2.4% to $117.08 a barrel this morning extending the 3.3% advance yesterday.

Asian stocks dropped for a second day with about 8 stocks falling for every one that rose on the MSCI Asia Pacific Index. In currency markets, the flight to safety theme also saw the Yen make its largest gains against GBP in three months. On the flipside, EM currencies and assets remain under selling pressure with the Indian Rupee being the biggest loser, followed by the Turkish Lira, Mexican Peso and the South African Rand, within G10 the biggest losers have been the commodity linked Australian, New Zealand and Canadian Dollar.

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Investec FX  Investec FX provides foreign exchange, interest rate and money-market solutions to FTSE, AIM, private companies and non-bank institutions.