Market Analysis: Increasing North Korea’s Tension impacts Market Prices

August 9, 2017

N. Korea Threat – Markets in Tension.

Market Analysis: Increasing North Korea’s Tension impacts Market Prices

FXPrimus has summarized the market indicators today! See what’s happening and what to expect!

Today’s Important Indicators

Chinese CPI and PPI are expected to remain unchanged and increase 0.1% respectively while Crude Inventories are expected to fall by 1.5M barrels.

Volatility could appear to be high around the release of RBNZ Interest Rate decision, where analysts forecasted a steady figure of 1.75%. Any new developments on the N.K – U.S situation must be watched closely.

Today’s Forecast for Important Trading Indicators

Market Movers

  • USDJPY – Dollar gains against Yen on JOLTS record high only to dip 0.38% on safe-haven demand. Dollar rises against Yen during the release of U.S job openings, as the numbers increased to 6.16M compared to the expected 5.74M. The move also supported last week’s NFP data, however this did not last as rising tensions in N. Korea, increased Yen’s demand. Yen keeps pushing lower, reached a below 110 level, a level not reached since last Friday pre-NFP.

USDJPY 4-HOUR CHART

  • AUDUSD – Aussie declines on U.S data, maintains weakness after today’s releases on Home Loans and Chinese CPI. The Australian Dollar fell almost 90 pips since yesterday, retraced marginally over the past few hours. AUD/USD plummeted in the early session after Home Loans and Chinese inflation data disappointed. The weakness is also supported from recent geopolitical tension between China and N. Korea as the latter has plans to strike on U.S Pacific territory.
  • EURUSDEuro moves lower against Dollar on positive U.S data extending last Friday’s losses. Euro declined almost 100 pips yesterday, the biggest drop since last Friday’s 150 pips and it’s currently in consolidation over a small range of 50 pips. The pair trades around 1.174 while investors expect today’s economic indicators to decipher the pair’s next move.
  • USOILOil moves lower for a 3rd consecutive session as doubts over increased output remains. Crude Oil settled lower close to $49 per barrel, below the 200 SMA, ahead of EIA release today at 14:30 over OPEC’s ability to cut production and restrain production increase. Attention is turned over the US-N.K tensions and today’s release, despite an inventory decline of 7.8M barrels.

CRUDE OIL 1-HOUR CHART

  • XAU/USDGold falls after upbeat U.S data lasted for hours, as safe-haven demand increased. Gold prices moved lower on Tuesday as U.S JOLTS report topped expectations, however, this was short-lived as Gold gained attention on risk sentiment as N. Korea “carefully examining” plan on a missile strike. Gold bottomed on 50% Fibonacci level while this morning it broke the 23.6% after having re-entered the daily ascending trend line.
  • US indexes closed lower, with DJ -0.15% and S&P 500 -0.24%.
  • In Europe, UK 100 appreciated 0.14%, whereas DE 30 saw an increase of 0.28%.
  • In Asia, Hang Seng declined 0.61%, Nikkei plummeted 1.19% and ASX 200 raised 0.38%.
  • In stocks, Apple raised 0.80% while Tesla 2.83%.

See more of FXPRIMUS

Free 123 USD

30 USD for Free

25 USD for Free

300 USD for Free

100 USD for Free

30 USD for Free

Partner brands

Hercules