Middle East Tensions Hit Risk Appetite

Although EU and US indices rallied in their first trading day of the new year, Asian bourses turned south overnight following US airstrikes in Iraq, resulting in the killing of an Iranian and an Iraqi top military commanders. The safe-haven yen surged, while oil prices rallied on concerns of supply disruptions.

INVESTORS ABANDON RISK ASSETS AFTER US STRIKES IN IRAQ

The dollar traded higher against most of the other G10 currencies on Thursday and during the Asian morning Friday. It gained against NZD…