US Dollar to Pound Sterling (USD/GBP) Exchange Rate Firmer on Safe Haven Demand

The US Dollar (USD) Exchange Rate was trading broadly higher against the Pound (GBP) and advanced to a 5-month high against the Euro (EUR) on Monday on demand for safe haven currencies as tensions between the West and Russia increased.

With a lack of market moving economic data releases the geopolitical events were dominating market movements on Monday.

Market sentiment in general was weakened by geopolitical concerns as investors grew jittery by news from Ukraine, Israel and Syria.

On Monday up to 100 Palestinians and 13 Israeli soldiers were killed in heavy fighting in the Gaza strip as Israel stepped up its two-week long assault on Islamist militants from Hamas.

As the death toll mounts mounting pressure is growing on Israel to end the bloodshed.

According to reports more than 700 people were killed in Syria at the end of last week and the toll is likely to have risen over the weekend as ISIS tightened its grip on its territory in the civil war ravaged nation.

The grisly tally marks the bloodiest period of violence in Syria since the start of the civil war back in 2011.

Market sentiment was further damaged after concerns over Ukraine increased further on Monday.

News reports showed that Ukrainian government troops launched a heavy assault against the rebel held city of Donetsk.

The biggest provider of risk aversion however was concerns as to how the West will react to the shooting down of a passenger jet in eastern Ukraine.

Tensions between the US and Russia has increased and raised concerns that further sanctions will have a negative impact upon the wider global economy.