UN Condemns Korean Missile Test

The United Nations Security Council condemned North Korea’s “outrageous firing of ballistic missile” over Japan on Tuesday. However, it did not give any indication that it was prepared to take severe actions against Pyongyang, which is called the latest launch of a “curtain-raiser.” North Korea stated that the launch an intermediate-range ballistic missile (IRBM) was to counter the U.S. and South Korean military drills. Wednesday, the North Korean leader Kim Jong-un called for more than weapons tests targeting the Pacific Ocean. Meanwhile, on the foreign exchange market, the U.S. dollar recovered from its four-month low against the yen as North Korea fears subside.

source:Investing.com, Damir Sagolj/Reuters

Important events due in the U.S. today is the ADP Nonfarm Employment Change for August, which releases at 12:15 GMT and the U.S. will also communicate its second quarter GDP at 12:30 GMT today. These data could highly impact the trend of the U.S. currency and Wall Street indices and also leave any clues on the economy’s health. President Donald Trump visited Texas on Tuesday to survey damage from the first ever major natural disaster as rainfall from Tropical Storm Harvey lashed Houston and many people fled deluged homes. Thirteen people have been killed and the damage occurred is expected to be the costliest U.S. natural disasters.

The U.S crude oil inventories is due at 14:30 GMT while the Reserve Bank of Australia Governor Lowe is set to deliver speech at 23:30 GMT. Australian indices traded higher in today’s session, with the ASX 200 rising by 0.02 percent. Gold futures dropped slightly in Asian market, despite easing from nearly an 11-month high on Tuesday, as the dollar pared losses on geopolitical tensions between different countries.

Technical Analysis



A look at the EUR/AUD graph depicts that it reached a record high at the 1.51627 level around 07:00 UTC and it immediately picked a downtrend from the very next hour as it tumbled on the forex market yesterday. The Australian Building Approvals for July, released earlier today at 01:30 UTC could have impacted the trend of this asset on the market. Today also, the asset is seen to maintain yesterday’s bearish trend, use the FX/CFD tool.



This currency pair was seen shedding losses in Tuesday session as from 15:00 UTC, dragged by pullbacks to reach a low level of $0.79459 around 19:00 UTC. However, it successfully picked up some on the market and closed its session bullishly at $0.79583 by 23:00 UTC. Today, the asset initiated its session on a positive note, pulled by momentary jumps to reach a record high of $0.79937 by 03:00 UTC. It could rise further through today, use the Options Builder tool for this one.



The U.S. dollar recovered from early session sell-off on Tuesday after it hit its lowest level in more than 2 ½ years amid concerns surrounding a North Korean missile launch over Japan. The USD/JPY pair gained strength as from 13:00 UTC where it traded at 108.541 yen, pulled by a huge set of momentary jumps to reach 109.762 yen by 19:00 UTC. It is seen trading with much volatility in today’s early trade, but it could eventually shift to an uptrend later during the day.

Things to watch on the market

Tip 1

The USD/JPY pair should be closely watched today as the U.S. currency recovers from Tuesday’s low of 108.265 yen which was the greenback’s lowest level since mid-April.


Tip 2

It is advisable to trade the EUR/USD, GBP/USD, AUD/USD and the Dow Jones Industrial Average, which is available for trade on the One Touch Options.


Tip 3

Consider trading on the Brent crude, the AUD/USD, EUR/AUD and the ASX 200 index.