The pace in demand for the Japanese Yen has picked up significantly following the breaking announcement moments ago from President Trump that the North Korea summit will not be going ahead. Gold is also roaring higher, providing confidence to the view that investors are suddenly moving towards safe haven assets.
What we are noticing in the market is a sudden change in investor sentiment, where traders are becoming less inclined to look at riskier assets and are encouraged to safe havens instead.
If investors use this news to price political risk premium back into their portfolios, then we could have a very busy conclusion to what has already been an eventful week for the financial markets, with the Turkish Lira crisis and the ongoing trade negotiations between Washington and Beijing already attracting attention across the globe.
