The risk that the war in Israel spreads remains palatable, and several observers have warned of the greatest risks of a world war in a generation. Still, the capital markets remain relatively calm. The US dollar is softer after closing last week firmly. The only G10 currency unable to post corrective upticks today is the Swiss franc. Among emerging market currencies, the Polish zloty has been boosted by the pro-EU election results, and the Mexican peso lead the complex. Gold, which rallied 3.4% at the end of last week, is seeing its gains pared by nearly 0.9% today and the yellow metal is straddling the $1916 area. ... (full story)