Japanese Yen, Gold Prices Rise as US Strikes Syria
- There was an exodus from risk assets in Asia Friday on news of US missile strikes against Syrian
- This is the first authorization of force by the US against the regime, which is backed by Russia and China
- Gold prices rose and the Japanese Yen against its G10 FX counterparts
The Japanese Yen rose alongside gold prices on Friday following a unilateral US cruise missile strike against targets in Syria.
US officials told local media that dozens of cruise missiles had been fired at an air base in the Middle Eastern country, in response to the chemical weapons attack this week which has killed more than eighty civilians. This is the first time that the US has taken direct action against the government of Syrian President Bashar al Assad, who is backed by both Russia and China. The latter country’s President Xi Jinping is in the United States for talks with President Trump.
Financial markets took predictable flight, with USD/JPY falling to 110.36 from the 110.94 area, probably on repatriation by Japanese investors seeking safe haven. Gold prices also rose while currencies usually linked to better risk sentiment such as the Australian Dollar fell.
Heavy fall: USD/JPY
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--- Written by David Cottle, DailyFX Research
Contact and follow David on Twitter:@DavidCottleFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.