Markets Focus On Geopolitics

D. Trump announced a new round of financial sanctions against North Korea on Thursday. And the Hermit Kingdom wasted little time in responding. The leader of North Korea can’t help but bothering markets. This time the menace is quite serious since we may be talking about a hydrogen bomb test in Pacific.

It’s obvious that the traders’ attention is now far from FOMC and its monetary policy. Geopolitics is the major issue for today. Friday is passing by under the aegis of safe-heavens.

JPY, CHF and gold grew across the board. USD/JPY lost almost 100 points, dropped below the strong support line at 112.00 and touched session lows near 111.65 in the European morning.

During the last couple of hours the pair has been trying to get back the psychological mark 112.00 which seems unlikely for today. Further slide might open the door to the intermediate support near 111.43.

But, usually the entire story with the nuclear tests ends with stabilization. So, it’s quite possible that USD/JPY will make a U-turn and surge toward the fresh highs.

This entry was posted in Market and tagged . Bookmark the permalink.
0 0 votes
文章评分
Subscribe
Notify of
guest
0 评论
Inline Feedbacks
View all comments