North Korea performed a second scary nuclear test. This move scares the Western world. Did this ignite risk aversion? In Memorial Day’s thin trading, the dollar stopped falling and even made some small gains. Forex trading began slowly this week. Americans are on holiday due to Memorial day. Also British banks enjoy the Spring Bank Holiday. But news was supplied from the far east. North Korea, one of the most isolated countries in the world, performed a second nuclear underground test. The nuclear explosion was stronger than the first one, about three years ago. It caused an earthquake in a magnitude of 4.7 in Richter scale. South Korea and Japan are afraid, very afraid. The Security Council is meeting for an emergency session. Barack Obama is deeply concerned. North Korean Bomb and Forex Trading Well, late on Friday, the dollar dived even deeper than during the week. Following last week’s trading, many articles “buried” the US dollar. A credit warning or downgrade seemed imminent. With the early morning news from the east, the dollar stopped falling, and even made against some currencies. EUR/USD is under 1.40, GBP/USD is under 1.59 and USD/CAD went back up as well. The explanation in times of trouble is risk aversion: safe haven currencies are receiving high demand. Yes, even if their credit rating is downgraded. Tomorrow (Tuesday), when the market returns to full capacity trading, we’ll see if this effect continues, or if economic indicators start to kick in. Do read my special coverage for the US dollar: Contraction or Retraction. In the bad news pipeline: Dramatic elections in Lebanon and Iran, which might offer action in the middle east… Yohay Elam Yohay Elam 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 a 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. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Forex Daily Outlook – May 26th 2009 Yohay Elam 13 years North Korea performed a second scary nuclear test. This move scares the Western world. Did this ignite risk aversion? In Memorial Day's thin trading, the dollar stopped falling and even made some small gains. Forex trading began slowly this week. Americans are on holiday due to Memorial day. Also British banks enjoy the Spring Bank Holiday. But news was supplied from the far east. North Korea, one of the most isolated countries in the world, performed a second nuclear underground test. The nuclear explosion was stronger than the first one, about three years ago. It caused an earthquake in a… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.