Let's pay attention to the distant geopolitical risks ...

The February 14 incident, in which a car bomb exploded in Pulwama, a region under India's jurisdiction in Kashmir, and killed 45 soldiers, has grown.

After a certain lull, things escalated again. By mid-Asian session, the first report came out that Indian military aircraft had entered Pakistan's airspace without permission. The air forces reacted with initial attempts to detect and counteract, and once the pilots felt they had prematurely released their "load" before turning. The target was a terrorist camp, which, according to the report, was deleted, but without sacrifices.

The incident is happening in the LOC - Line of control, a real border between Pakistan and India. According to the ANI report, a group of Indian Mirage 2000 airplanes carried out the attack. The Indian army's staff denied knowing the operation. They add that there was a subsequent artillery fire.

The yen against the dollar reacted positively to the news by 70 pips. The Indian stock market and the rupee collapsed.

Against the background of the troubled Brexit, trade talks and the start of the Kim and Trump meeting, geopolitical risks are growing in a very sensitive and dangerous region.

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response