Geopolitical risks dominate the markets
Currency markets entered the new week in a risk-negative sentiment. Geopolitical risks increased on the back of social unrest in Iraq. What’s more, the breakdown of gas talks between Ukraine and Gazprom added to market concerns. As a result, market demand on the safe Japanese yen remains strong.
Last week the crude oil prices surged to the levels unseen since autumn 2013 under threat of supply disruptions. If the trend remains in place, risk appetite and the US equity markets could suffer.