After the frenetic reaction to the Egyptian crisis and weekend concerns of further contagion, the market has reversed losses to near early Friday levels.
We opened this morning in Asia with concern afoot that today may bring rampant continuation. As often happens with geo-poloiutical tensions the effect on financial markets can be short-lived without an obvious worsening.
The dollar has been supported in USD/JPY by Kampo interest and rumoured SNB in the USD/CHF and EUR/CHF is near the high of the day.
EUR has benefited to Sterling’s detriment by usual month-end demand; while I don’t expect this to continue much further for the moment, Jamie’s warning of 1.3700 option strikes today has been on the money (thanks Yoyosa for the reminder !)……and we may trade quietly around here until they fall away…