Geopolitical concerns are rising - BBH

According to the research team at BBH, geopolitical concerns are rising, but the implications for global markets are a bit unclear.  

Key Quotes

“The US launched missile attacks on Syria in retaliation for Assad’s use of chemical weapons on civilians.  There was an initial risk-off reaction on news of the strikes, but markets have since stabilized.  The ruble remains down -1%, however, as US actions in Syria will raise tensions with Assad’s chief backer, Russia.  We expect nervous, choppy trading conditions to continue as we go into the weekend.  With Turkey also a big regional player in Syria, TRY is also suffering.”

“The euro remains heavy, but has not been able to break this week’s low near $1.0630.  Same goes for dollar/yen despite the yen being the best performing major this week, as the pair continues to flirt unsuccessfully with the 110 level.  AUD is the worst performing major this week, and appears to be headed for a test of the 0.75 level.  Sterling is the second worst performer this week.”