27.02.201915:28 Forex Analysis & Reviews: Escalation of the military conflict between India and Pakistan pushes the yen and the franc higher

With the threat of a trade war, it added warning quite real. After Pakistan has shot down two Indian military aircraft, the conflict between the two countries could reach a new level. The Pakistani authorities even held a meeting of the Security Council with the participation of representatives of the nuclear forces. Financial markets reacted predictably and investors noticeably diminished their appetite for risky assets. However, safe currencies began to grow, which is usually the case in such situations. Both of the Japanese yen and the Swiss franc are rapidly becoming more expensive.

Japanese and Swiss currencies tend to rise during political and economic shocks. Pakistan shot down planes the day after Indian pilots struck the terrorist bases on its territory for the first time after the war in 1971. Currently, the best choice of major currencies is yen. The franc reached a 3-week high - 0.9967 against the dollar while and the yen rose to 110.355 yen per dollar.

The pound rose after British Prime Minister Theresa May proposed to lawmakers an option that increased the chance of avoiding a problem withdrawal from the EU. Meanwhile, the dollar was stuck near a three-week low "thanks to" the comments of Fed Chairman Jerome Powell that the regulator will be more "patient" in regards to the rate hike. As long as the Fed maintains a neutral position, it will be difficult for the dollar to find an additional impetus for growth.

In addition, you should pay attention to the sterling pound, which for the first time in five months has risen above $1.33. The pound rose after British Prime Minister Theresa May proposed to lawmakers an option that increased the chance of avoiding a problem withdrawal from the EU. Meanwhile, the dollar was stuck near a three-week low "thanks to" the comments of Fed Chairman Jerome Powell that the regulator will be more "patient" in regards to the rate hike. As long as the Fed maintains a neutral position, it will be difficult for the dollar to find additional impetus for growth.