The Tension on the Korean Peninsula Supports Safe Assets

Yesterday, the Japanese yen and the Swiss franc significantly strengthened against the US dollar. The “yellow metal” quotes show a positive trend. North Korea reported a successful hydrogen bomb test. The US intends to tighten economic sanctions against the DPRK.

In August, the index of business activity in the construction sector of the UK declined from 51.9 to 51.1. Experts expected the growth of the indicator to 52.0.

The Reserve Bank of Australia, as expected, left the interest rate unchanged at 1.50%. The central bank said that the country’s economic growth corresponds to the current forecasted values. Support for the Australian dollar is also provided by positive statistics from China. In August, the index of business activity in the services sector from Caixin increased from 51.5 to 52.7.

The “black gold” prices show mixed results. At the moment, futures for WTI crude oil are being traded near $47.5 per barrel.

Market Indicators

The dollar index (#DX) closed the trading session in the negative zone (0.22%).

At the moment, the 10year US government bonds yield is at the level of 2.142.15%.

Today we recommend you to pay attention to the following economic reports:

Statistics about business activity in Germany and the Eurozone at 10:55 (GMT+3:00) and 11:00 (GMT+3:00), respectively;The index of business activity in the services sector of the UK at 11:30 (GMT+3:00);The volume of retail sales in the Eurozone at 12:00 (GMT+3:00).

At 20:10 (GMT+3:00) the FOMC member Kashkari will give a speech.

by JustMarkets, 2017.09.05