Drone attack on Saudi Aramco and how it may impact Dollar exchange rates

Pound to Dollar Rate Buoyed by UK Employment Data

Oil price rises due to attack

Overnight news broke that there has been a devastating drone attack on Saudi Arabia’s  Aramco oil production facility, which has removed roughly 5% of the worlds supply in one hit.

This has led to oil prices rising by as much as 20% in early morning trading and will be likely to add to global tensions which are already fairly high.

Donald Trump blames Iran

Donald trump has been quick to jump in and blame Iran for this and rebels in Yemen have been quick to claim the attack, so I would expect that we may see further tensions rise between the U.S, Iran and Saudi Arabia which could benefit the safer haven currencies and gold, classed as a safer haven too.

What are Safer haven currencies?

Safer haven currencies are those such as the U.S Dollar and Swiss Franc, in times of global tension these currencies tend to strengthen as investors tend to fly to safety and place their funds into these currencies to protect themselves.

On top of this with oil prices rising, those currencies linked to oil have risen in value, such as the Canadian Dollar and Norwegian Krone.

Will Boris strike a deal?

Boris Johnson is reported to be speaking to Jean Claude Junker today with the view that he is making progress with the EU and DUP with regards to getting a deal put together to leave the EU on October 31st.

The Irish backstop still is one of the big talking points and there have been reports over the weekend that there are plans to put together a plan that will resolve this issue, which is one of the main sticking points on progress at present.

The next 6 weeks will lead to plenty of market volatility surrounding Brexit and any news of positive progress may lead to a sharp spike in the value of the Pound, so it is key that if you have a currency transfer to carry out in the coming days, weeks or months ahead that you have one eye on the markets at all times.

If you are in this position and you would like us to monitor the markets for you then we would be more than happy to. Feel free to fill in the form below or to place a rate alert on the live exchange rates section of this site and we will ensure that we are your eyes and ears on the markets in these volatile times.