The Dollar regains its status as a safe haven asset with a second episode of the escalation of the conflict in Ukraine: after the firing of US-made ‘ATACMS’ missiles, it was the turn of the British ‘storm shadow’ (derived from a American model) to be sent to Russia.
The greenback gained up to +0.65% during the session (the ‘$-Index’ rose to around 106.92) and shows +0.55% this evening at 106.78.
The Euro symmetrically fell to around 1.0507 before narrowing the gap a little, to -0.6% around 1.0530.
The Yen also fell by almost -0.5% while the Swiss Franc and the Pound limited their decline to -0.3% (after -0.5% during the session).
Note that the Pound is supported by the record yield of UK ‘Gilts’ (+7Pts) which returned to the 4,500% mark and is close to 4.52% after peaking at around 4.555% (worst score since 10/22/2023).
Inflation in the United Kingdom has just returned to 2.3% and is moving away from the 2% target, in the wake of energy prices (price of gas but also of electricity billed to households).
Gold has been doing better and better since Friday and is rising towards $2,650, or +3% from a floor of $2,568.
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