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Korea peninsula’s tension – what will happen to markets?

Olymp Trade

As I was afraid after UNSC boycotted North Korea more it reacted. North Korea launched a missile over Hokkaido Japan early on Friday. This time the tension increased after the Prime Minister Shinzo Abe issued a statement announcing "No bright future". If North Korea continues to walk in this direction and South Korea fired a 2L Hyunmoo-II missile, respond to a North Korean missile test today.
In my point of view, the tension seems more serious than the previous and it may become worse, if South Korea, Japan, USA or UN will counterattack violently. However, the increasing tension suddenly effect to world markets: gold boosted up 0.3%, U.S. dollar fell, yen rose up, most stock market in Asia and Euro dropped. However, Stock of Thailand has good signal by breaking 1650 points, flowing in of foreign capital and increasing oil price. I think we may need to focus on the tension and look at the real effect on Monday after the UNSC emergency meeting in next a few hours today.
Meanwhile, the BoE held interest rates at 0.25% but signaled a rate hike in the coming months yesterday as well as U.S. core CPI increased 0.2% so GBP rose higher against USD and dollar was weaker by higher inflation. I suggest to consider of U.S. macroeconomic indicators such as Core retail sales at 19.30 GMT+7 today because Fed will use every significant indicators for the new interest rate at the meeting next week.

Olymp Trade Review

Source: https://olymptrade.com
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