U.S. Shares Tumble on geopolitical tensions, Yen Gains Ground Against Euro
The Japanese Yen surged to a more-than-one-week high versus the euro on Tuesday as haven currencies like the yen and the Swiss franc sustained their steam following North Korea’s latest nuclear test.
The pair EURJPY plunged by 0.7 percent to trade at as low as 129.61 yen per euro in North American trading session on Tuesday – the lowest level since August 25th. The yen was supported as elevated geopolitical tensions on the Korean Peninsula sapped investors’ confidence in risky assets.
South Korea’s Defense Ministry on Monday reported that Pyongyang is making preparations for the possible launch of another intercontinental ballistic missile. The next weapons test is forecast to be processed around Sept. 9, when North Korea marks the anniversary of its foundation in 1948.
U.S. shares traded lower on Tuesday. The Nasdaq Composite Index lost more than 1.4%, the Dow Jones Industrial Average was down 1.08% and the S&P 500 shed 1.00%.
Sell Stop at 129.600, Take profit at 129.100 Stop loss at 129.800