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UK Terrorist Alert

Thu, Aug 10 2006, 14:55 GMT
by Sandra Garcia, Noemi Jansana

FXstreet.com

On August the 10th UK lived a day on maximum terror alert after police said they foiled a terrorist plot to blow up 12 planes flying between Britain and the United States. 21 suspects have been arrested under the Terrorism Act 2000 in London, the Thames Valley and Birmingham.

The terror threat increased volatility in all the markets. In terms of Forex, GBP and EUR were affected: During the day after the facts, GBP/USD and GBP/CHF fell on the news.

FXstreet.com has compiled information on news coming from UK and U.S. and market repercussions on this special report.

• Where are currencies going now? Get the picture on FXstreet.com Rates & Charts
• Read the Air travel advice to passengers from the UK Government

In-Depth Analysis

• Daily Technical Strategy for Aggressive Profits - UK ON MAXIMUM TERRORIST ALERT: Trade Balance for US expected negative by Cashmonsterz
  
• Forex Trading Strategies - Terrorism Takes Center Stage by Saxo Bank
  
• Daily FX Commentary - Security fears hurt Sterling by Investica
• US Open Market Points - Terror Threat Hurts Pound and Euro by FXCM
• Forex Markets Today - Terror concerns inject volatility ahead of US numbers by CMC Markets

Related News

• European shares slide, bomb plot rattles investors (Reuters)
• UK shares close off lows but spooked by bomb plot (Reuters)
  
• Forex - Pound recovers some ground after drifting lower on terror alert news (AFX News)
• UK terror plot pressures sterling; US trade due (Reuters)
• 6-Oil down $1 after UK says foils aircraft bomb plot (Reuters)
• Stocks fall after terror arrests (AFX News)
• Airline plot in "final stages" of planning when foiled (AFX News)

Analysts Comments

• Neil Mackinnon, chief economist at ECU Group:
  "The elevation in the terrorist alert has created volatility in the currency markets, and the pound has sold off a little bit and the dollar has come under a little bit of pressure." - AFX News
• Dariusz Kowalczyk, senior investment strategist at CFC Securities:
  "This could be an accelerated reaction similar to what happened after Sept. 11. After 9/11 prices rose because people were thinking about supply stability. However, later on oil fell, because people said consumer confidence will fall and global growth will slow. After this UK consumer confidence may decline, which will be negative for growth in the UK and beyond, which may affect oil demand." - Reuters

Published on  Thu, Aug 10 2006, 16:39 GMT

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