North Korea and the ECB.
Morning review.
Monday passed in a sluggish trade. This is natural since the US had a holiday.
The main news has not changed. Markets are looking at the situation around North Korea and waiting for the ECB on Thursday.
In North Korea, it seems that the US has chosen a path of tightening sanctions (after North Korea tested a high-yield hydrogen bomb on the weekend). At the same time, South Korea conducted a large naval military exercises in response to North Korea's actions. South Korea reports that North Korea is preparing a new launch of its intercontinental missile.
The US demands to cut off supplies to North Korea. This is a request for China as it is the main "supplier" of North Korea. However, China still persists. In fact, China, pushing the effectiveness of sanctions against North Korea, pushes the United States to a military strike against the regime of DPRK. How much did China correctly calculate its risks in doing so? We'll see.
For the rest, it is quiet. The markets are waiting for the ECB on Thursday.
EURUSD
There is consolidation. We are waiting for the breakthrough of borders and movement, either up or down with the situation practically being 50 to 50.
Upward levels: 1.1925; 1.1980; 1.2065
Down: 1.1845; 1.1820
