Top 5 Things to Know Before You Start Trading
This Tuesday gold is trading at 10 months high after North Korea fired a missile over Japan causing an explosive reaction in the markets.
1 – Markets See High Volatility After North Korea Launches Missile Over Japan
North Korea Fires a missile over Japan and US and Asian stock markets collapsed on Tuesday while the JPY jumped to 4-month highs against the USD. The missile flew over Japan and landed in the Pacific about 1180km off the northern Region of Hokkaido. This was the first missile over Japan.
2 – JPY at 4-Month High
The USD/JPY fell to 108.33, its lowest since April, but managed to recover to 108.86 at time of writing. The JPY tends to benefit at times of geopolitical uncertainty. Similarly, the Swiss Franc, which is also a currency that investors turn to when geopolitical tensions rise, rose also to a 1-month high of 0.9498 against the USD.
3 – EUR at 2.5 Year High
EUR/USD hit a 2.5 year high just shy of 1.20, maintaining its uptrend after ECB President Mario Draghi did not express concern about the Currency’s rise in his speech in Jackson Hole last week.
4 – Gold at 10-Month High
Gold is at a 10-month high, surging back above the $1,300 level today on the back of heightened geopolitical tensions. The spot price currently sits at $1,317.55 an ounce, leaving it at the highest level since November 11, the day after the US presidential election. The spot price has now risen 9.4% from July 10, extending its rally from December 15 last year to 17.4%.
5 – Economic Calendar Quiet for the Day
Today’s eco calendar remains fairly uneventful. US consumer confidence is interesting but won’t move markets ahead of ADP, PCE deflator, payrolls and manufacturing ISM later this week. Geopolitical tensions could take center stage.