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- The Dollar is not yet back in demand as a safe haven – Commerzbank
The Dollar is not yet back in demand as a safe haven – Commerzbank
Economists at Commerzbank analyze how the market could react to Israel's increased ground action in Gaza.
Conflict spreading and involving other countries is the biggest risk
The market has so far reacted cautiously to the news from the Middle East, and the Dollar is not yet back in demand as a safe haven.
There is a risk that the situation will worsen as the week progresses and that the Dollar will strengthen again. But the biggest risk is that the conflict will spread and involve other countries in the Middle East. If that happens, market reaction is likely to be much stronger.
It makes sense to continue to monitor events in order to be able to react in case there are stronger movements in the US Dollar.
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