Dollar struggles ahead of UN Security Council meeting on North Korea

Lucy White
The UN Security Council, due to meet at 2pm, is likely to consider further sanctions against North Korea (Source: Getty)

The US dollar has struggled to hold its weight against major currencies this morning, ahead of an emergency meeting of the United Nations Security Council prompted by North Korea's latest military tests.

Read more: North Korea says another nuclear test has been a "perfect success" as Kim Jong-Un poses with hydrogen bomb

The sterling hit a high of 1.297 against the dollar, and was up 0.08 per cent at the time of writing. The greenback was struggling even more against the euro, which was up 0.32 per cent at the time of writing after hitting a morning high of 1.192.

“The erratic price action on sterling continues to suggest that the currency is waiting for a catalyst to break above the 1.300 resistance, or below the 1.285 support,” said Lukman Otunuga, research analyst at FXTM.

“Although Brexit uncertainty continues to weaken the pound, political risk in the US and fading rate hike expectations have also punished the US dollar.”

As US President Trump's rhetoric warned of a “massive” military response if the US or its allies were threatened, the Japanese yen and Swiss franc climbed. At around 1.30pm GMT, the dollar was down 0.51 per cent and 0.73 per cent against each respectively.

Read more: DEBATE: With escalating tensions between the US and North Korea, is there a real risk of nuclear action?

The dollar's struggles have been compounded by disappointing US employment data released on Friday. A total of 156,000 jobs were added in August – below the 180,000 forecast.

The 15-member UN Security Council, which is due to meet at 2pm, is likely to consider further sanctions against North Korea after it tested what it said was an advanced hydrogen bomb yesterday.

Read more: North Korea promises "thousands-fold" revenge on US after UN sanctions over missile tests

The ensuing geopolitical upset has caused investors to pile into “safe” gold, causing prices of the precious metal to hit new 12-month highs above $1339.5 today.

Investor confidence in the Eurozone was revealed earlier today to be up this month, although the survey was completed before North Korea's latest missile tests.

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