Yesterday North Korea launched yet another missile threatening Japan. But the question is what effect it’s having on the Forex market.
Just as the news came out USD went down and the bonds went up pushing the interest down. But look what happend with the USDJPY in a very short time span after the news
USDJPY went down quickly on the news but then went up again to the highest level in over a week. This tells us that a lot of the risk from North Korea is already build into the market and that we should probably look some where else for the market moving news the next weeks.
Some of these news could easily be financial/job-related. And if we look at the news calender here t
here is enough to look at.
Just remember that the financial markets have a hard focusing on more than one factor at the time. And right now it seems like North Korea is not the most important factor to look at in you daily trading.
Of course it’s another case if USA i actually starting an armed conflict but for now the risk seems to be dealt with in the markets.