To forex news the fact that North Korea restarted their plutonium reactor might seem minimal. It has little to do with the currency market directly; however, in a series of recent events it could speak volumes for the future market. Understanding what happens throughout the world is part of a trader’s job. Sometimes you can ignore the smaller current events, but you have to focus on the larger events. In this case North Korea is a big part of how the future might be shaped.
Examining North Korean Movements for Forex News
North Korea and South Korea have been in a state of war since the 50s. North Korea has dealt with famine since the 80s. The country has also been working to create nuclear weapons that could someday reach the shores of the USA. In February tensions between the USA and North Korea became so heated that North Korea turned the reactors off. It did not stop their tests and in April North Korea promised they would restart them. So, why does this become forex news?
It is the first instance in the year in which the USA has backed off from threats. The USA was in negotiations to provide food to North Korea. They threatened to withhold this support if North Korea persisted in creating weapons and testing them. Next in August, Syria came up due to chemical weapons being released. The USA said there was a ship offshore with the power to air strike. The United States president has since backed off after Russia became involved with the talks and suggested that Syria agree to relinquish their chemical weapons for destruction.
This second issue with the United States backing off as well as threatening military action created a plummet in USD currency values that was talked about for weeks in forex news. Everyone immediately sold USD and headed into the safe haven currencies like CHF and JPY.
Tensions High Enough to Affect Forex News
North Korea stated they turned the reactors back on and have held tests in order to be ready with operational plans. It is their way of preparing should the US, Japan, and South Korea try to target North Korea under the guise of maritime training. According to the forex news reports, North Korea is not likely to reach tensions as high as in February, but they are poking at the troubled giant.
The USA is certainly a troubled giant. It is still the largest economy in the world, but with its government shutdown affecting forex news and all financial markets it is troubled. Poking at such a big country at a time when it is in a partial shutdown could very well be a grand plan. It would certainly put one more problem on the table for the already overburdened situation. North Korea’s movements will need to be monitored to ensure they do not reach a new tension height that would be closer to February’s issues. It is also just one more issue in a line of military issues like Syria, Egypt, and areas in the Middle East.
Get a free Forex PDF PLUS:
- 14 Video Lessons
- Free One-on-One Training
- A 5000$ Training Account
- In-House Daily Analysis
- Get FULL ACCESS