Kim Jong-un’s threats of nuclear warfare have officially impacted forex markets. Both the USD and JPY dipped last week due to North Korea’s recent antics. The decline continues to follow the downward trend that has hindered the two currencies as of late.
North Korea Tests Missile
The USD and JPY were riding a three-month high, but recently fell to a disappointing 114.00 by week’s end. While both currencies have remained stable since then, more chatter of possible missile testing by North Korea has them sinking once again. The JPY has been hit even harder than the USD as most experts view Japan as North Korea’s most likely target. Jong-un has showed no fear even after the United Nations imposed sanctions on the country.
Back in mid-September, North Korea launched a missile over Japanese airspace. U.S. and South Korean military confirmed the missile later settled into the Pacific Ocean. The missile supposedly traveled more than 2,000 miles in an effort to intimidate Japan’s leadership. It was the second missile North Korea sent Japan’s way, the prior launch coming in August. Reports suggest the multiple tests were being conducted to see just how much range these missiles could have in the air. Some believe the missiles have enough energy to reach parts of the United States – a theory that has clearly scared off forex investors.
The Euro Steals The Show
Black Friday was a big day for department stores, but it was an even more important day for the euro. It was supposed to be a quiet week across the markets due to the holiday, but the euro struck gold by the end of the week. Friday capped off a fourth straight day of gains for the currency – partly due to the struggling USD. Will the USD and JPY recover any time soon or will the two continue to suffer under the threat of nuclear turmoil?