Dortmund Explosion is the latest in geopolitical worries –

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A bomb exploded in the German city of Dortmund, just by the hotel where Borussia Dortmund players were staying. According to initial reports, Marc Bartra, a Catalan player of the team, was injured. While there are no details so far, the incident jumps to the headlines and there are fears of a terror attack.

This saddening event joins a long list of geopolitical worries that send money into the safety of the Japanese yen.

  1. North Korea: The rogue nuclear-armed country has been testing various missiles in recent weeks and is high on Trump’s radar. The tweets from the President are quite combative. Trump aims to “deal” with Pyongyang with or without cooperation from China.
  2. Syria: The civil war in the Middle Eastern country remains in the headlines after the chemical attack by Assad and the US response with Tomahawk missiles. What seemed to be a tit for tat event now seems like an ongoing tension between Russia and the US.
  3. French elections: While there are high chances that centrist Macron will emerge as the President of the French Republic, radical-left candidate Melenchon is emerging from the bottom of the polls and could sneak into the second round against radical-right Le Pen. In this scenario, markets will be stuck between a rock and a hard place. The elections are less than a fortnight away. How Le Pen could enter the Élysée Palace – a two step scenario for EUR/USD parity

USD/JPY already breached 110 and trades at 109.70. Support only comes around 108. 110 was a very tough nut to crack.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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