The increasing range of USD exchange to main currencies shrinks on Monday. USD exchange to JPY fell over 112 JPY. Due to the aggressive speech from North Korea, investors are seeking for the risks-avoiding assets now.
Germany had an election on Sunday. The Conservative Union of Prime Minister Merkel won the election. However, their support has decreased obviously. Euro performed weakly because of that while USD increased.
Foreign Minister of North Korea Li Yong Hao had a speech in New York on Monday. He said the conversation of President Trump about North Korea on Twitter is like declared a war to North Korea. He also mentioned their rights to shot down the bombers of the US. This speech made the value of risks-avoiding assets increased.
After the speech was reported, the risks-avoiding assets including JPY and gold increased. The US stocks increased the rage of falling. USD fell to 11.67 JPY. The high point was at 112.53. It was ended at 111.99 last Friday. While Japan is having a diplomatic crisis with North Korea, Japanese Prime Minister Abe ask for the sooner election to organized power. USD to JPY increased at that time.
Abe will dismiss the Congress on Thursday. However, he hasn’t mentioned the planning date of the election. The market expected it would hold on 22nd October. It is a whole year before the plan in December 2018. Analysts said FED and the policy of BOJ is a conflict. Moreover, the election plan is getting sooner. Therefore, it is positive for USD to exchange to JPY.
North Korea made money changer’s business more complex.
Money changer’s opinion about Euro!
Euro fell to 1.1854 USD. It ended at 1.1948 last Friday New York.
Although the middle-right union of Merkel won the election on Sunday, they made the lowest support record since 1949. On the other hand, German AfD party which against immigration won 13% of the vote. The extreme right side party get into the Congress the first time in 50 years.
Analysts said although the success of AfD would not make some serious impacts, in short, Populism would make some impacts to Euro.
The French election on Sunday, President Macron’s party had failed. His middle party is hard to reform the society. It also helped USD to Euro increased.
USDX to six currencies increased 0.5% to 92.583.
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