09.08.201711:03 Forex Analysis & Reviews: Global macro overview for 09/08/2017

Global macro overview for 09/08/2017:

Swiss Franc and Japanese Yen will be the main beneficiary as North Korea tensions are rising. The overnight developments are not looking good for the whole world as North Korea refuses to negotiate and threatens the US with "Severe Nuclear Lesson" after the United Nations Security Council voted unanimously 15-0 to impose $1 billion in sanctions on North Korea exports. In a written statement handed to reporters on the sidelines of a regional security forum in Manila, North Korean Foreign Minister Ri Yong Ho said the regime had developed nuclear weapons as a legitimate option for self-defense "in the face of a clear and real nuclear threat posed by the U.S". President Donald Trump warned North Korea about facing "fire and fury" if the regime nation makes more threats to the United States.

In this global uncertainty situation, the risk off sentiment was broadly pervasive through the currency markets with two currencies to gain the most: Swiss Franc and Japanese Yen. The US Dollar weakened against the yen, which is often sought in times of geopolitical tension. If the current sentiment prevails, JPY and CHF will broadly gain across the board, together with Gold and Silver

Let's now take a look at the EUR/CHF technical picture at the daily timeframe. The current reaction is very negative as the CHF is broadly appreciating against the Euro. The EUR/CHF moved very sharply to 1.1300 as the rate has already fallen to 1.3% today. The next technical support is seen at the level of 1.1198 and 1.1128.