How Will The Libyan War Affect Eur/Usd?
I am thinking of going short on aud/usd. I feel because of libyan war the commodity currencies such as aud and cad would fall.
not sure about eur/usd bro.
can someone please answer this? Markets open pretty soon.
appreciate the assistance!
Don’t think it’ll have a huge effect on E/U. The price of oil might have a knock-on effect. If the Libyan thing looks like defusing after the initial bombardment oil may drop and E/U may drop some with it and vice versa. Interest rate expectations and general economic improvement in some EZ countries being weighed against the sovereign debt problems in the peripheral EZ countries is the main driver for E/U at the moment it seems. Plus there’s speculators who will surely be aiming for close to 1.43 - all dips in E/U have been bought up lately so this is the better value bet in my opinion.
Thanks PipBandit.
How about AUD? What immediate effects do you think it will have?
Thanks
Unless things get considerably worse there (or potentially throughout the MENA region) and leads to a bout of risk aversion I don’t see it impacting AUD much. General economic conditions in Asia-Pacific (especially China and earthquake in Japan), RBA interest rate expectations, price of gold, mining industry demand, etc. would have more effect on AUD at the moment.