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4 Mar 2014
Flash: How the EUR/USD reacted to the Russian invasion of Georgia? - BBH
FXStreet (Bali) - Win Thin, Global Head of Emerging Market Currency Strategy at Brown Brothers Harriman, explains how the EUR/USD reacted to a similar geo-political event when Russia invaded Georgia.
Key Quotes
"What happened to global markets during this period in 2008? It is hard to say exactly what the precise driving forces were, as the Georgian conflict came just before the Lehman failure in September 2008."
"For what it’s worth, the euro had just posted its all-time high near $1.6040 on July 15, 2008, just weeks before. On August 8, the day the Russians invaded, the euro dropped nearly 4 cents from above $1.53 to just below $1.50."
"The euro continued to weaken, moving below $1.40 by September 11 and below $1.25 by October. The low near $1.2330 was the trough, however, as the euro recovered to end that year near $1.40."
Key Quotes
"What happened to global markets during this period in 2008? It is hard to say exactly what the precise driving forces were, as the Georgian conflict came just before the Lehman failure in September 2008."
"For what it’s worth, the euro had just posted its all-time high near $1.6040 on July 15, 2008, just weeks before. On August 8, the day the Russians invaded, the euro dropped nearly 4 cents from above $1.53 to just below $1.50."
"The euro continued to weaken, moving below $1.40 by September 11 and below $1.25 by October. The low near $1.2330 was the trough, however, as the euro recovered to end that year near $1.40."