Asia is mostly pointing lower, with performances for most of the major equity index showing losses for the day. Much of the failing sentiment may be attributed to rising geo-political tensions as North Korea defies US warnings, and just a few hours after Trump’s “Fire and Fury” warning anounces that they are considering a missile strike on Guam, one of America’s territories located in the Western Pacific.
The US Dollar has weakened against those currencies percieved as safehaven currencies, in fact we are seeing it make losses against the CHF and the JPY this morning but has so far remained in the lead with the rest of the major currencies.
Gold, also percieved as a safehaven in times of possible tension, has edged higher this morning and is currently trading at $1264.52.
EURUSD enters its second day of consecutive losses, currently trading at 1.1740, the currency pair has so far been supported around the 1.1715/1.1720 levels. Realtime Forex’s TraderTip expects weakness to push price action towards 1.17 levels for the day, but we could see a correction after that unless 1.1655 level is breached to the lower side.
Late today the Reserve bank of New Zealand is scheduled to anounce its latest rate decision.
