What to Look out for Today – USD Recovers as N. Korea Threat Subsides

The USD and Asian stock saw a marked increase as the threat of N. Korean missile strikes softened in investors minds – Wall Street also experienced a stronger session closing. The dollar recovered slightly after a drop in its price to a two and half year low.

European stocks also seemed to recover slightly with the FTSE 100 opening at 7.337.43 and currently seeing a 0.35% gain trading at 7,36330. The Dax also saw and increase in the region of 0.51% trading at 12,026.45 after closing at 11.945.88 the previous session.

Although yesterday safe-havens seemed to be the plat du jour - today the strengthening dollar shows investors adding a bit more risk to their positions. Secondary contributors to the USD price was Trump’s nominal reaction to the Pyongyang threats, significantly positive consumer confidence index (reaching its highest in the past five months), labor market and house prices data.

This trend might continue if the US second quarter gross domestic product release is also positive along with the Core Personal Consumption Expenditures – both scheduled to be published at 12.30 pm GMT.

This article comprises the personal view and opinion of the STO Investment Research Desk and at no time should be construed as Investment Advice.

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