North Korea missile launch

North Korea has launched a ballistic missile which flew for 37 minutes and landed in Japan’s Exclusive Economic Zone (EEZ). The projectile was fired at 00:40 GMT and it flew about 930 km (578 miles) before landing in the Sea of Japan today, according to the U.S. military officials. Japan’s Prime Minister Shinzo Abe stated that he will ask the presidents of China and Russia to stop North Korea’s arms programme as the latter is ignoring all warnings. The Asian market has been deeply affected by this missile launch.

source: BBC News, CNBC

After the Reserve Bank of Australia held its interest rate steady at a record low, the Aussie fell on the foreign exchange market. Australia also reported its retail sales for May earlier at 01:30 GMT, with a gain of 0.6 percent month-on-month, beating analysts’ expectations of a 0.2 percent rise. The Japanese yen, on the other hand, edged higher after North Korea’s missile launch while the U.S. dollar traded lower by 0.4 percent at 112.910 yen.

U.K. is set to release its Construction Purchasing Managers Index (PMI) for June due at 08:30 GMT today, and this data can impact U.K. assets. Meanwhile, markets in the U.S. is closed for the 4th July holiday. On Monday, the electric car maker Tesla announced that its first Model 3 car would be ready by Friday, two weeks ahead of schedule and this led shares to rise by 2 percent.

Technical Analysis

AUD/USD

AUD/USD

The AUD/USD pair experienced much tension on Monday ahead of Reserve Bank of Australia data releases which was due earlier today. The asset recorded a set of pullbacks, starting from 06:00 UTC as from $0.76744 to close this bearish trend by 10:00 UTC at $0.76525 on Monday. It recorded a huge fall as from the 0.76785 level at 04:00 UTC to reach the 0.76272 level, the same hour today. It may fall further in the next few hours, consider using the Classic Binary Options for this one today.

EUR/USD

EUR/USD

After recording a much volatile trend yesterday, the EUR/USD pair started picking up momentum as from 19:00 UTC and ended its session bullishly at the 1.13722 level by 23:00 UTC. In today’s early trading hours, the asset fluctuated on the forex market; it may however gradually rise later through the day according to the Ichimoku Cloud indicator. The U.S. market remains closed for the U.S. Independence Day holiday.

SPX500

SPX500

Since Monday morning, this index was seen moving towards an uptrend, it even gained several momentary jumps as from 10:00 UTC till 14:00 UTC where it was quoted at a record high of 2437.0 points since last Thursday. However, the S&P 500 index ended on a mixed note in yesterday’s session. It is seen fluctuating in today’s trading session and the Ichimoku Cloud indicator suggests a change in trend around 14:00 UTC today.

Things to watch on the market

Tip 1

Consider trading indices such as the Japanese Nikkei 225, South Korea’s Kospi index, the Hang Seng index and the Shanghai Composite as these remain affected after the North Korean missile launch.

 

Tip 2

It is advisable to trade on currency pairs such as the AUD/USD, EUR/AUD, and the USD/JPY. These assets are available for the Long Term tool.

 

Tip 3

In regards to the U.K. Economic Event, consider trading the EUR/GBP, GBP/USD and the FTSE 100. In terms of Stock, Tesla Motors should not be overlooked as this can generate good opportunities to traders.