The News That Trumps All Else
May 15, 2017
Dennis Gartman is editor and publisher of The Gartman Letter, and strategic advisor of the AdvisorShares Gartman Currency Hedged Gold ETFs (GEUR & GYEN). He regularly contributes to AlphaBaskets and lends his institutional insight to educate advisors and investors about commodities and the forex markets, including about trading gold in different currency terms.
The Yen and the US dollar are weaker as the week begins and all attention is focused once again upon North Korea which has launched yet another test missile, which has reached into the upper atmosphere but has travelled a rather short distance. The missile did, however, travel far enough to put Japan and of course South Korea at risk. That news, however trumps all else as we write, and likely shall continue to do so as the trading day makes its way from Asia to Europe and then to North America.
The market is marking down the US dollar and the yen for the US and Japan are the nation’s in North Korea’s sights. Europe, even Russia, are not apparently a concern to Kim Jung-un; but South Korea, Japan and the US are, and for the moment those currencies are being sold as geopolitics dominates the forex landscape while economics takes a seat in the proverbial wings of the geopolitical theatre.
The other news is that Mr. Macron has assumed the Presidency in France and that the Tories in the UK seem capable of a very real landslide victory in the upcoming Parliamentary elections there several weeks hence. Indeed, it seems very likely that the size of the victory by May & Company in the UK shall be historic, with the Tories possibly holding a 200 seat lead over the seemingly hapless Labour Party.