Gaza War – Israel Began Full Scale Invasion

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In the middle of the weekend, Forex traders are tuning up to the news from the middle east: the war in Gaza has turned into a full scale conflict, with Israeli ground forces now operating in the Gaza strip.

This is a major escalation in the Gaza war, that might make oil prices jump around the world. HAssn Nasrallah, head of the Lebanese Hizballah organization, expressed support for the Palestinians in Gaza, but didn’t make any move.

The key to flaring the middle east is in Nasrallah’s hands: if rockets are fired from Lebanon to northern Israel, this limited Gaza war could turn into a big turmoil in the middle east – pushing oil prices very high. 

Oil prices, which have lately collapsed could make a comeback: this could help the Australian dollar, Canadian dollar and the New Zealand dollar could gain from a spike in oil prices, while the USD could be hurt by them.

This escalating conflict in Gaza would also impact the GBP/AUD which has already lost ground on Friday, January 2nd.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

4 Comments

  1. Pingback: Forex Crunch » Forex Weekly Outlook - January 5-9 2008

  2. i just want to ask the reason why the israel and palestine fight?????

  3. Oh, the Israeli-Palestinian conflict is very complicated and very controversial. In this blog I write about the conflict only if it has a significant impact on Forex trading.

    If you want to learn more about the conflict, I suggest that you start with this article on Wikipedia:
    http://en.wikipedia.org/wiki/Israeli-Palestinian_