Dollar surging steadily as US tension reduces with N. Korea
Equity markets around the world climbed to the new high as the North Korean situation was calmed for the time being with recent developments. Recently, North Korea has tested another provocative missile over Japan on 19th Mar’17, which comes as a threat to the US. There have been dialogues among various countries government to put sanctions on North Korea due to it’s irresponsive, ruthless behavior, defying the laws of the international community. US President “Donald Trump” along with South Korean President “Moon” trying continuously to put diplomatic pressure on North Korea leader deterring him on the consequences of isolation of the country diplomatically & economically. This may eventually lead down the path of its own collapse.
However, amidst all these investors have put back their faith again in the US dollar due to which the safe heaven currencies were trading lower today. The dollar has moved sideways ahead of the FOMC meeting on Tuesday to discuss the peaceful resolution of North Korea Nuclear’s programs.
The US secretary said they will try for a peaceful resolution but if efforts fail with North Korea’s nuclear actions then the country will use its military options.
Besides all above, the investors & market watchers are also keeping a close eye on the BOJ policy meeting on Thursday, where they have expectations that central bank will continue to maintain its easy monetary policy.
Safe haven currencies like yen remain under substantial pressure today as market watchers are closely looking for the speech of US President Donald Trump before the UN General assembly on Tuesday which clarifies the further course of actions of US economy towards North Korea in future.
Nevertheless, it appears that due to continuous tensions brewing up the market seems to be more volatile for the coming weeks & the market direction will follow the market news & outlook of investors towards the US economy.