The euro climbed higher ahead of the European Central Bank meeting on Thursday, in which policymakers are faced with the challenge of dealing with weak inflation and robust growth.
USDJPY continues to find pressure lower on North Korea concerns. The USDJPY is currently at 108.71 after opening this week at 109.49. The first bearishness test would be the attainment of August lows of 108.27 and April lows of 108.13.
The yen climbed higher against the US dollar on Monday, as forex investors cut their exposure to riskier assets following North Korea’s most powerful nuclear test conducted so far.
Major US equities closed the month of August on a positive note yesterday. The mood in Asia remained mostly positive as well although gains at the time of writing were less decisive. The major drivers behind sentiment were; comments by US Treasury Secreatry Mnuchin re upcoming tax plan, a better than expected Manufacturing PMI for August from China.
Sentiment during the US session managed to shrug off fears of WW3 as N.Korea’s threats became more vivid after the launch of their latest missile. Despite some initial risk aversion, US major indices finally closed in positive territory yesterday.