Some events related with economics and politics affect the currencies price in Forex trading online, one of the situations that are currently affecting the market is the possibility of a U.S.-led military strike on Syria.
According to a report in Reuters.com this possibility hit emerging market assets hard on Wednesday (28-08-2013) and pushed oil prices higher while triggering a safe-haven run to gold and the dollar.
Brent crude oil futures for October delivery settled up $2.25, or 1.97 percent, at $116.61 a barrel after reaching a six-month high of $117.34. Fears that Western countries were preparing to attack Syria raised concerns over the security of oil supplies across the Middle East, which pumps a third of the world's oil. Front-month U.S. crude oil futures ended up $1.09, or 1 percent, at $110.10 a barrel after rising as high as $112.24 – the highest since May 2011. Usually when the crude oil presents an increase in the price, investors start to turn into other assets, which affects the prices of currencies in Forex trading online.
There is a possibility that the brent crude oil to spike to $150 if the conflict in Syria causes the interruption of supply in the region, according to the Societe Generale (French bank) "The concern is that an attack on Syria will reverberate through the region, increasing the spillover into other countries and possibly resulting in a larger supply disruption elsewhere," said Michael Wittner, oil analyst at the bank. Over the coming days, Brent could surge to $125, either in anticipation of an attack or in reaction to its start, he said.
According to the report, In the scramble for safety, investors turned to gold, which hit a 3-1/2 month peak above $1,430 an ounce, and bought the dollar in Forex trading online on a view that it was the ultimate refuge from the risks of intensified upheaval in the Middle East.
In Forex trading Online, the dollar rallied across the board as investors sought the greenback's safety. Investors, having bought the yen and Swiss franc a day earlier amid Syria-related concerns, also locked in steep gains in those currencies on Wednesday (28-08-2013). The dollar, yen and Swiss franc are considered safe havens in times of economic stress and geopolitical turmoil.