There is a new topic in the market – geopolitics. And I know how to take profit on that! In the moments like this the market is focused on such safe haven assets like CHF, JPY, USD and gold. At the same time risk assets like RUB, AUD, NZD come under selling pressure. And this understanding will help us to find interesting crosses.
So, yesterday, Donald Trump promised to hit North Korea with fire and fury in case of any signs of danger to the USA. A couple of hours later we learnt that the KPA strategic force was now carefully examining the operational plan for making an enveloping fire at the areas around Guam with medium- to long-range strategic ballistic rocket Hwasong-12 in order to contain the US major military bases on Guam.
If the speculations keep going and the escalation is rising, the crosses like ЛШЩ have all the potential to fall further. For the pair the initial target may be found at 86.00 followed by 85.60.