USDJPY continues to find pressure lower on North Korea concerns. The USDJPY is currently at 108.71 after opening this week at 109.49. The first bearishness test would be the attainment of August lows of 108.27 and April lows of 108.13.
The US Dollar index however is managing a small recovery so far this morning, after the sell off throughout Monday and Tuesday. The USD is losing mostly from against the JPY, CHF and the GBP.
The rise for Gold continues, on Tuesday we’ve seen the yellow metal attain $1344.26 which levels represent the highest for 2017 so far.
Meanwhile a look beyond FX and metals markets shows that sentiment remained low with the major indices in Asia this morning heading south. Much of the Risk Aversion is being attributed to the renewed geo-political tensions after North Korea conducted nuclear tests on Sunday.
Comments from Fed Governor Brainard also continued to worsen risk sentiment. Governor Brainard sais that the Fed should be cautious on tightening given inflation was below target.
Australian Q2 GDP came out at 1.8% in line with previous but softer than expected, later today we have a BoC rate decision and US ISM Services Data
