North Korea tensions pressures the US dollar agains the yen
GETTY Geopolitical tensions over North Korea pressured the dollar against the yen on Monday
North Korea made a failed missile test launch on Sunday, adding to regional tensions that have escalated over the past weeks as U.S. President Donald Trump has taken a tough rhetorical line with Pyongyang. "We are seeing once again a little bit of a flight to safety as a result of the news over the weekend of North Korea's attempted missile test. That's resulting in a little bit of a weakness in the U.S. dollar," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.
US Army soldiers prepare for WAR against North Korea Fri, April 14, 2017 The US military's largest non-nuclear bomb killed dozens of Islamic State militants as it smashed their mountain hideouts, Afghan officials said April 14, ruling out any civilian casualties despite the weapon's destructive capacity. The GBU-43/B Massive Ordnance Air Blast bomb dubbed the 'Mother Of All Bombs' hit IS positions in Achin district in eastern Nangarhar province Play slideshow 1 of 11
The dollar fell to a five-month low against the safe-haven yen, while the U.S. dollar index was down 0.4 percent. Gold gained 0.7 percent to hit a five-month high. Most major European markets were closed for Easter Monday, while Wall Street reopened after being closed for the Good Friday holiday. Worries over the upcoming French elections as well as softer U.S. economic data added to the bearish sentiment.
GETTY - STOCK IMAGE Investors flocked to buy gold which gained 0.7 per cent to hit a five-month high
Data on Friday showed U.S. retail sales fell for a second straight month in March and consumer prices dropped for the first time in just over a year.
We are seeing once again a little bit of a flight to safety Omer Esiner
Data showing China's economy grew faster than expected in the first quarter helped offset the soft U.S. figures. World stocks as measured by the MSCI world equity index rose 0.3 percent.
GETTY - STOCK IMAGE Wall Street reopened today after being closed for the Good Friday holiday
U.S. stocks regained some ground after the recent global risks had weighed on the market last week. The Dow Jones Industrial Average was up 67.03 points, or 0.33 percent, to 20,520.28, the S&P 500 gained 5.64 points, or 0.24 percent, to 2,334.59 and the Nasdaq Composite added 15.55 points, or 0.27 percent, to 5,820.70. The United States, its allies and China are working together on a range of responses to North Korea's latest failed ballistic missile test, Trump's national security adviser said on Sunday, citing what he called an international consensus to act. That dwarfed any relief for market players after the U.S.
GETTY - STOCK IMAGE Worries over the upcoming French election added to bearish sentiment