GBP Investors responded to the events in the Middle East by fleeing for safety, which put pressure on the British Pound. Additionally, the recent increase in crude oil prices made things worse for investors because rising oil costs could undermine the BoE’s efforts to control inflation. Since there are no UK economic statistics to consider going forward, the movement of the GBP throughout the day will probably depend on news reports regarding the Middle East conflict.

EUR This morning, the Euro lost more ground as a result of the weakening risk sentiment that followed the growing geopolitical tensions in the Middle East. Furthermore, because Germany, the leading economy in the eurozone, is highly exposed to energy costs, the steep rise in oil prices in response has had a negative effect on the euro. In the end, these occurrences have made the prognosis for the Euro even more gloomy.

USD Early this morning in European trading, the safe-haven U.S. Dollar rose as risk sentiment was hurt by the Middle East conflict’s intensification, which came after last week’s positive payrolls data. On that front, the dollar had benefitted late last week from the publication of payrolls figures that were stronger than anticipated; Friday’s announcement revealed that U.S. employment climbed by the most in eight months in September.

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