Yesterday, numerous diplomats reacted to the missile launched by North Korea that overflew northern Japan. As could have been expected, reactions were varied: the United Nations Security Council and the United States firmly condemned the move, while the Chinese and Russians gave more nuanced statements. China, notably, is calling on the Americans to give up deploying their anti-missile defences in South Korea. In short, no real diplomatic progress to report. The yen, the Asian safe haven currency, which tends to rise after this type of event, lost ground against the U.S. dollar yesterday, a sign that markets do not appear alarmed.
After reaching a two-year low against its major peers, the U.S. dollar has been posting gains since yesterday morning. Is this the start of a trend or a simple rally?
Given this context, we encourage U.S. dollar sellers to place orders, especially with major economic indicators due up tomorrow (Canadian GDP) and Friday (U.S. jobs).
Julien Duquette
Range of the day : 1.2480 – 1.2605