Exchange Market Monday: Thermonuclear Weapon of North Korea, JPY Acts Strong in Short Term
According to the report of FXStreet, JPY and Gold price highly increased on Monday morning because of the missile of North Korea. USD to JPY was at 110.26 level last Friday. Since the missile from North Korea, JPY increased to 109.42 level, then back to 109.87 level slowly. The price of gold went up 0.69% to 1333.70 USD per oz. North Korea announced their 6th nuclear test on Sunday (3rd ). This is the strongest one North Korea ever tested. The US market has a day off today since the Labor Festival.
North Korea successfully done the nuclear test, JPY rises in short term
Before 10 A.M. 4th, USD to JPY increased 0.47%. One dollar to 109.77 JPY for temporarily. Westpac Exchange analyst Sean Callow said ”Like every time North Korea do the test, buy JPY Swiss, francs, bonds and golds. Sell AUD.” Japanese 10 years national debt bonds fell to the lowest point since November 2016. Risks from North Korea nearly to be the sheep child who is crying of the wolf. Said Callow. “The rate of return of conflicts in Korea is lower this year.” “Most the investors only consider the worst situation in economic sanctions.”
Euro to USD increased to 1.2064 level last week. However, it keeps decreased to 1.1862. Due to the impact of North Korea, it only raised a bit about 1.1884. Rumor says most officers in ECB feel bad about the strong Euro.
Highlight of USD
The employment except for agriculture of US showed 156 thousands increased. It’s lower than 180 thousand the expected. However, ISM announced that the index of factories of August is 58.8. It’s the highest point since April 2011. For now, FED December raises interest rates chance is only 42.2%.