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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

Markets React to North Korean Missile Launch over Japan; Euro Continues to Strengthen over USD

Published August 29, 2017
  • North Korea fired a missile over Japan’s Hokkaido island earlier this morning in a move that sharply escalated tensions in the region; Japanese Prime Minister Shinzo Abe called Pyongyang’s aggression a “serious and grave threat” to Japan
  • Gold, the Japanese Yen and the Swiss Franc are all experiencing sharp demand as investors flock to safe-haven assets due to heightened political tensions in North Korea; gold prices jumped to their highest level since November 2015
  • Global stocks lost strength overnight as market sentiment shifts to “risk off” mode; Asian stocks ended lower, European shares fell to their lowest level in 6 months and US stocks futures are forecasting a weaker opening for Wall Street
  • EUR/USD rose above 1.2000 for the first time since January, 2015 as investors continue to lend faith to the Euro after ECB President Mario Draghi showed little concern of overvaluation in the currency; the US dollar continues to drop as the US dollar index moves to its weakest level also not seen since January, 2015
  • Oil prices continue to suffer from the effects of Tropical Storm Harvey, with WTI prices dropping over 2 percent yesterday; 13 percent of the US’ refining capacity remain offline as Texas continues to cope with unprecedented flooding from the storm