Explosions heard in Jerusalem following warning about rocket fire from Iran, while Lebanese media reports two Israeli raids on the town of Tol in southern Lebanon
Context
The explosions in Jerusalem and reports of Israeli raids in Lebanon mark an escalation in regional tensions, particularly given the warnings about potential rocket fire from Iran. This situation could prompt safe-haven flows into assets like gold and the JPY, while increasing volatility in the Forex space, especially for the USD and EUR as markets assess the risk outlook ahead.
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