Japanese Defense Ministry: North Korean projectiles didn’t make a direct impact on Japan

Japanese Defense Ministry as confirmed that the North Korean projectiles didn’t make a direct impact on Japan, yet the White House confirmed that Washington was aware of the N.Korea projectiles launch reports and are monitoring the situation.

The news today first came through South Korea's military which was quoted by the Yonhap news agency that North Korea had fired multiple unidentified projectiles off its east coast from the Hodo peninsula on Wednesday morning local time. This was according to South Korea's Joint Chiefs of Staff (JCS) says, according to Yohnap.

North Korea has so far made no comments on the issue. Last week, North Korea fired two short-range missiles, according to the JCS. Both missiles reportedly travelled about 430km (267 miles), reaching an altitude of 50km, before falling into the Sea of Japan, also known as the East Sea. Pyongyang has voiced anger over planned military exercises between South Korea and the US, an annual event. The North warned they could affect the resumption of denuclearisation talks.

FX implications:

The market is far more focussed on the Federal Reserve and trade talks this week, with a slew of key US data that has already started to hit the markets with last nights inflation data from the prices for Personal Consumption Expenditures which continues to fall in below the Fed's 2.0% target which will give policymakers political and economic cover if they choose to cut interest rates today. The PCE rose by just 1.35% in the 12 months to June. The Dollar has been on the backfoot and markets are sitting tight awaiting the outcome.  However, on any escalation in the tensions between Japan, NK, US and SK, USD/JPY will likely extend further to the downside on risk-off flows.