Dollar Erases Declines, Yen Weakens

The video discusses the market's reaction to North Korean tensions, highlighting the typical movement towards safe haven assets like the yen and gold. It notes that while initial reactions were muted, the situation remains stable unless a major escalation occurs. The video also examines volatility indexes, showing that foreign exchange markets have remained relatively stable. Finally, it compares gold and yen as safe haven assets, suggesting that gold may be more reliable due to Japan's proximity to potential conflict.

What was the typical market reaction to the North Korean headlines?

• Strengthening of the US dollar

• Strengthening of the Korean won

• Strengthening of the euro

• Strengthening of the yen

Why has the volatility in the foreign exchange market been more muted?

• Because currencies are still within recent ranges

• Due to massive risk triggered by other events

• Because of the euro breaking out of its typical range

• Due to a major escalation in North Korea

Which asset is considered a traditional safe haven?

• The yen

• The euro

• The US dollar

• Gold

In the context of North Korean tensions, which currency is not considered the ultimate safe haven?

• The yen

• The US dollar

• The Swiss franc

• The euro

Which currencies could benefit from safe haven flows due to their geographical distance from the Korean Peninsula?

• The US dollar and the euro

• The Korean won and the yen

• The Swiss franc and the euro

• The yen and the US dollar