Escalation in the Middle East is boosting the US dollar

<p>This news was out a good few hours ago, but its gaining more and more attention, and boosting the dollar, weighing on risk trades:</p><ul><li><a href="https://www.forexlive.com/news/reports-iran-fired-a-ballistic-missile-which-struck-near-the-us-consulate-in-erbil-iraq-20240115/" target="_self">Reports Iran fired a ballistic missile which struck near the US Consulate in Erbil, Iraq</a></li><li><a href="https://www.forexlive.com/news/more-on-iran-strikes-near-us-consulate-in-iraq-with-ballistic-missiles-20240115/" target="_self">More on Iran strikes near US Consulate in Iraq with ballistic missiles</a></li></ul><p>There are also reports that Iran's Revolutionary Guard have been deployed to assist houthi terrorists in Yemen.</p><p>All this Middle East escalation is seeing flows out of risk trades and into the US dollar. US yields are up. Treasuries not seeing the same bid flows. </p><p>News flow out of the Middle East is light, there are reports of further incidents but its all sketchy. Most of the mainstream news is seemingly focused instead on US primary voting in Iowa.</p>

This article was written by Eamonn Sheridan at www.forexlive.com.