Article by ForexTime
Risk aversion dominated the markets today as investors were spooked by the announcement from US President Barack Obama on Thursday that he authorized military air strikes in northern Iraq. The aim was to prevent a humanitarian catastrophe against violent Islamist forces.
Demand for the safe haven Japanese yen shot up, and placed the greenback under pressure to fall to a two-week low of 101.50.
Also dampening risk appetite were other geopolitical events, such as the ongoing tensions in the Middle East, regarding the Gaza strip. Israel has resumed bombing the area.
Meanwhile in the east of Ukraine there was fighting, while Russian President Vladimir Putin said he would launch counter-sanctions on the West.
European equities fell today and US stocks fluctuated. German 10-year yields tumbled as much as four basis points while the rate on similar-maturity Treasury notes sank to the least in more than a year as government bonds rose around the world.
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