This from a note from JP Morgan on the weekend developments (nuclear test)
- Immediate reaction appears to be similar to last week, USD/JPY fell early, before giving up those initial declines in trading later in the day
- Situation seems to be escalating
More
- "While immediate reaction may be relatively muted, concerns toward September 9 will make it difficult to hold yen short positions heading into the weekend"
(Note - September 9 is North Korea foundation day, "Day of the Foundation of the Republic")
- USD/JPY upside likely capped around 110.40
- Downside near year low around 108.20
- Breach of 108.13 would require more serious developments
via Bloomberg
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Updates:
- UST futures higher as trade reopens after the weekend
- S&P500 emini futures down around half a percent as trade reopens on Globex after the weekend
USD: