Geopolitical tension remains high and will support JPY, Gold and CHF

North Korea's latest nuclear test provokes the usual move of assets to Safe haven tools. At the moment, the North Korean leader is preparing a new missile launch, maintaining high-level geopolitical tensions, and this will support the Japanese yen, the gold, bonds and sort of the Swiss franc.

On the other hand, many ask themselves whether the Japanese yen will really be a shelter if Asia is a real war. Japan's Nikkei lost 0.9 percent of its value, and South Korean Kospi fell 0.6 percent, indicating what was happening in the region.

The latest nuclear test in North Korea does not bode well, because most military experts say it could really be the last catalyst needed by the United States for a massive military strike in the country. Speaking outside the White House, following a meeting between President Donald Trump and his national security team, US Secretary of Defense Jim Mattis said that Trump had asked to be informed of all available military capabilities.

We stay long on safe haven tools, following closely the situation in North Korea.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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