The American and British airstrikes on Houthi rebels in Yemen have increased the geopolitical tensions in the Middle East and the Red Sea, which could have an impact on the forex market. According to some experts, the strikes could trigger a retaliation from the Houthis, who have vowed to target all American and British interests in the region. This could lead to more instability and uncertainty in the global oil market, which is a major factor affecting the exchange rates of many currencies, especially those of oil-exporting and oil-importing countries.
Some analysts also suggest that the US and UK intervention in Yemen could affect the relations with Iran, which backs the Houthi rebels, and Saudi Arabia, which leads a coalition against them. This could have implications for the nuclear deal negotiations and the regional balance of power, which could also influence the forex market sentiment and volatility.
Additionally, the forex market is affected by various macroeconomic factors, such as inflation, interest rates, trade balance, and political events. Therefore, any changes in these factors in the US, UK, or other countries involved or affected by the Yemen conflict could also have an impact on the exchange rates of their currencies.
To summarize, the American and British attack on Houthi rebels could affect the forex market through its effects on the oil market, the regional geopolitics, and the macroeconomic factors of the relevant countries. However, the extent and direction of this impact may depend on the developments and outcomes of the conflict, as well as the reactions and expectations of the forex market participants.