Gerry Davies reports that there’s a rumor about the death of North Korean leader Kim Jung Il. This could explain why North Korea attacked South Korea with shells, killing a few people. Kim Jung Il’s heir, Kim Jong-un, might want to show that the North is still strong and that there’s a new guy in town by initiating this severe border clash. Update December 19th, 2011: North Korean television officially announced the death of Kim Jung Il, that suffered from “physical and mental stress” due to his job. He died already on Saturday, December 17th. The veteran autocrat leader’s son will take over, but he might have a power struggle with the military. These internal troubles could lead to regional tensions in Asia. South Korea and Japan are on the watch. The tensions weighed on the Japanese yen and the Australian dollar, while strengthening the US dollar. This could also come on the background of a new uranium enrichment facility discovered in North Korea. The South Korean political elite is hiding in underground bunkers. The Korean central bank held an emergency meeting after the attack. Note that this is only a rumor and that it hasn’t been confirmed. At the time of writing, the North Koreans haven’t commented on the incident, while all the world is talking about it, and there are already calls from Washington, Beijing and Moskow to defuse the situation. A full scale war is definitely unwanted, especially with North Korea’s nuclear arms. Update, 11:45 GMT: North Korea claims that the incident in the island of Yeonpyeong was a response to the big naval exercise made by South Korea and the US. The American 7th fleet based in Yokosuka, Japan is in a state of alert. The Japanese want a firm military response. This is the second North Korean offensive this year. In March, a North-Korean torpedo sank the “Cheonan” – a South Korean vessel, killing 46 sailors. Kim Jung Il has been sick for quite some time, and has avoided public appearances. Some of his official pictures from important events seem to have been heavily-“photoshopped”. The dollar strengthened across the board on the initial news of the incident. AUD/USD seems weaker than other pairs due to this breaking news. Want to see what other traders are doing in real accounts? Check out Currensee. It’s free.. 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 Expert score 5 Etoro - Best For Beginner & Experts0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 5 Read Review Open My Free Account Your capital is at risk. Forex Bits share Read Next AUD/USD Nov. 23 – Dives On Korean Crisis Yohay Elam 11 years Gerry Davies reports that there's a rumor about the death of North Korean leader Kim Jung Il. This could explain why North Korea attacked South Korea with shells, killing a few people. Kim Jung Il's heir, Kim Jong-un, might want to show that the North is still strong and that there's a new guy in town by initiating this severe border clash. Update December 19th, 2011: North Korean television officially announced the death of Kim Jung Il, that suffered from "physical and mental stress" due to his job. He died already on Saturday, December 17th. The veteran autocrat leader's son… Top 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.