The FX market does not know how to react to the latest escalations in the Middle East so it is doing nothing. Normally one would expect the CHF and the USD to strengthen in times of political upheaval but since the Egyptian ‘revolution’ three weeks ago, the CHF has been very volatile and the USD has fallen. It looks like the market now prefers to buy EUR, GBP, AUD or CAD.
The high in the EUR/USD in earlier interbank trade was 1.3724 and we are now back at the NY closing level around 1.3690. The other majors are also unchanged.
