North Korean Missile Launch Hits Markets

North Korea launched a missile which flew over the Japanese mainland early this morning in a move which has further escalated tensions in the region. Governments across the globe have condemned the move which is in contravention of UN rulings. The currency markets reacted predictably with UsdJpy and the Jpy crosses hit hard. Asian equity markets have opened in the negative and traders are expecting further volatility across all markets as the repercussions of this action continue to be digested through the day.

Prior to this event we’d seen a fairly quiet trading day with the dollar depreciating against most of the majors following on from the weekend’s fall out from Jackson Hole. The Euro continues to make fresh highs with the 1.2000 Psych level the next target.

This event will now dominate traders attention for the next few sessions as we await the inevitable response from President Trump via his twitter account and the consequent market reaction.

It’s a very quiet day ahead in terms of fundamental data releases and we have to wait until the New York session for any tier 1 figures which come in the form of the US Consumer Confidence.

Rakuten Securities Australia Review