China warned that a war on the Korean Peninsula would have devastating consequences after the US threatened military retaliation against North Korea if it proceeds with a nuclear test this weekend. That’s how we ended last week.
The Yen steamrolled last week featuring 7 pairs in the top forex movers of the week. The Dollar took a hard hit but this week holds promise. While Retail Sales fell for a second straight month, Consumer Prices also fell mainly on Oil prices. While the price of Gold has been on an uptrend, the Gold ratios are also approaching critical levels. If the ratios don’t follow through to the upside, the price rally in Gold is more likely to fail.
The potential catalysts for the markets today are: Empire State Mfg Survey (8:30 AM ET), Housing Market Index (10:00 AM ET), Fed Vice Chair Stanley Fischer Speaks (5:00 PM ET).