Intervention risk looms

The threat of intervention in the FX markets is rising after a week which saw George Bush’s annual State of the Union address up the war ante. The market has now priced in a war in the next month, and dealers fear this could trigger multilateral intervention.

"If a war starts and the euro shoots higher, we could see new highs over $1.17 and we could have concerted intervention then," said Will Rugg, senior currency analyst at MMS International in London.

Japan’s Ministry of Finance (MoF) reve