Forex Response to Persian Gulf Tension

www.TheForexNittyGritty.com – There does not seem to have been a huge , yet. The US and its Western allies have been ratcheting up pressure on Iran to submit its nuclear program to inspections. In fact Iran is under pressure to dump its nuclear program as international agencies believe the purpose of Iran's program is to develop nuclear weapons. As Iran has become increasingly cut off it has responded with threats to close the Straits of Hormuz. A third of all oil shipped by sea and a fifth of all oil traded in the world passes through the 34 mile wide straits every year. Currency traders are right to look for a . However, the economic worries and Europe, Asia, and North America seem to have taken precedence. The Euro rallied briefly as stronger than expected economic data came out of Germany and China. Over the longer haul, however, the Euro is not expected to do especially well. Austerity measures such as the French austerity plan and similar measures throughout the continent will likely lead to stabilization of the Euro Zone economy but will be a distinct drag on economic growth in the coming year or years. The may be a greater if Iran takes any steps to impede traffic through the straits. The US aircraft carrier USS John C. Stennis and its battle group are stationed in the area and, in fact, passed through the <b>…</b>
Source: Forex Response to Persian Gulf Tension (Youtube).