After accusing the Assad regime of using poison gas against dozens of civilians, missiles were launched from US Navy ships in the Mediterranean in a targeted attacked aimed at disabling Syrian chemical weapon capability.

The market response has been one of risk aversion and investors have behaved as expected turning to safe havens such as gold, the yen and treasuries, all rallying higher as a result. Oil has also spiked with West Texas Intermediate climbing over two per cent to a one-month high.

EUR

Speaking on Thursday, Mario Draghi, president of the European Central Bank, said there are no plans to end negative interest rates any time soon and plans to keep aggressive stimulus in place well into 2018.

Facing pressure from a number of European banks, who claim negative rates are eating into profit margins, Draghi has said that there is no reason for the ECB to change the sequencing of its exit from monetary stimulus. He has re-enforced this message by claiming that the easing package has been powerful in terms of easing financial conditions and potential negative side effects so far have been limited.

GBP

The pound buoyed by better than expected services PMI data on Wednesday. This is important because services account for 80 per cent of UK economic activity. The market of course reacted positively to the pound and tested 1.25 multiple times throughout the day. Unfortunately, this is a strong resistance level to break through and maintain above so more momentum is needed.

This was realised for a small period mid-week during the FED minutes and some dovish tones on the adjustments of the balance sheet and vague details on the pace and timing of next rate hikes – however – 1.25 still did not hold.

The key notes from the FED were that they are looking to start unwinding their positions (bonds and securities) that were taken during the quantitative easing programme.