Asia was mostly lower this morning and European reflected most of the negativity so far as well, geo-political tensions were at play and dragged on sentiment.

News headlines of a claimed-to-be succesful test for North Koreas’s intercontinental ballistic missile have dominated the market this morning. Despite its usual safe haven appeal the USD has been undecided so far probably awaiting more detail on what could be the US’s next step given it could involve it into a direct conflict.

The JPY garnered strength against the USD and the USDJPY currency pair went lower this morning as following 2 earlier consecutive daily gains for the USD. USDJPY is currently trading at 113.18 after earlier highs of 113.43.

The Reserve Bank of Australia left rates unchanged, in line with expectations and the Australian Central Bank offered Aussie bulls no hawkish talk to prop up the currency. Consequently the Aussie was lower across the board.

Later on today’s economic docket we have Canadian Markit Manufacturing PMIs.