North Korea holds firing missile, buy USD/JPY?
USD/JPY edges higher as tension between North Korea and U.S. has eased at this moment. Traders dumped safe-haven assets including gold, we think such trend could continue in the next few days before the release of FOMC Minutes.
- North Korea’s Kim said he would watch the actions of United States for a while longer before making a decision on the threatened missile strike near Guam, North's official news agency reported today.
- S. President Donald Trump did not have any fresh words for North Korea, but Defence Secretary warned yesterday that the U.S. military would be prepared to intercept any missiles fired by North Korea if they are heading to Guam.
- Dollar found some support after New York Fed President William Dudley said overnight he would be in favour of another interest rate hike this year.
- Based on price action these days, traders are not willing to sell dollar further when dollar index is around 93.
- In our weekly market report yesterday, we have mentioned USD/JPY may rise towards 110.45, and the current price at 110.20 is not far away. Here is the link to the report:
https://www.fullertonmarkets.com/blog/warning-do-not-tighten-policy-too-quickly
Fullerton Markets Research Team
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