The fall of the Dollar dominates today’s currency news as investors flocked to the JPY and CHF on the opening bell. The movement towards these safe haven currencies follows North Korea’s arms test which took place over the weekend.
North Korea claimed over the weekend that it had successfully tested its most powerful Hydrogen Bomb to date. One which is estimated to be five times the strength of the ones which battered Nagasaki and Hiroshima during World War Two. The explosion created a tremor measuring a magnitude of 6.3 confirming it was their most powerful bomb explosion to date.
North Koreas Testing has been met with global condemnation with a handful of world leaders commenting on Kim Jong Un’s actions.
The French and German leader Angela Merkel and Emmanuel Macron stating on conference call that
This latest provocation by the ruler in Pyongyang has reached a new dimension
The French and German leaders also insisting that sanctions would follow.
Elsewhere the UK’s Foreign affairs Minister Boris Johnson was just as concerned stating that
They seem to be moving closer towards a hydrogen bomb which, if fitted to a successful missile, would unquestionably present a new order of threat
Whilst Theresa May has described the Hydrogen tests as an
Unacceptable further threat to the international community
North Koreas southern neighbours have begun a number of live fire practices following the confirmed Hydrogen Bomb tests over the weekend. The live fire drills took place in Seoul and involved the South Korean Airforce and Army. It is believed the drill simulated a hypothetical attack on North Koreas Nuclear test site.
Many are looking to China to enforce sanctions; as North Koreas principle trading partner, they would have the ability to essentially shut down the country and its economy. China, however, doubts that further sanctions will stop North Korea and doesn’t agree with the South Koreas and the United States approach to the problem. Believing dialogue should have been attempted before military drills and threats.
In the lead, up to these Hydrogen tests, the US has been most vocal on the rapidly developing North Korean situation. With Trump regularly using menacing rhetoric including
They will be met with fire and fury like the world has never seen
Post H bomb test the threats are unlikely to subside with White House being quick to release a number of statements and twitter posts both condemning North Korea’s actions but also their economic partners.
Today’s latest currency news depicts investors diversion to safe haven currencies following the weekend’s developments. The clear benefactors being the Japanese Yen and Swiss Franc.
The Swiss Franc enjoying some solid gains totalling 0.7% against the US Dollar at time of publishing.
As mentioned the Japanese Yen has also appreciated following the weekend’s developments. Pricing changing significantly with the Japanese Yen strengthening by just over 0.5%. Below the 1.10 mark, the USD/JPY is trading at 109.70.