Geopolitical tension could benefit USD – Danske Bank

Chief Analyst at Danske Bank Allan von Mehren noted the escalating geopolitical concerns could be uSD-supportive.

Key Quotes

“Geopolitical tensions have come to the fore over the Easter week with both the North Korean and Syrian concerns mounting alongside the Turkish referendum”.

“JPY and CHF have gained in usual safe-haven moves, and GBP has resumed its general rebound with notably GBP/USD rising close to 1.26 yesterday”.

“EUR/USD has not been moved much by geopolitics this time round, which we ascribe to markets currently balancing the fact that the euro is still seen as a key funding currency versus the dollar’s long-standing status as the ultimate safe haven. A serious geopolitical escalation is likely to be USD positive”.