Sentiment during the US session managed to shrug off fears of WW3 as N.Korea’s threats became more vivid after the launch of their latest missile. Despite some initial risk aversion, US major indices finally closed in positive territory yesterday.

Moving on to Asia this morning, we see that much of the major indices took the positive US lead and traded higher, although the ASX200 and the Shangai index were marginally lower at the time of writing.

The two major factors at play remained N.Korea tensions and Tropical storm Harvey.

Risk hightened yesterday as the USDJPY manifested this by going to lows of 108.27, levels last seen in April of this year. However the situation appears to have changed now with the currency pair back to 109.80 levels.

The US Dollar index, measuring the strength of the USD against a basket of currenices, also dipped to fresh lows yesterday but similarly to the USDJPY move, this morning the index is back to levels seen prior to yesterday.

Caution undoubtedly remains as levels remain in check, but much of the risk aversion seen Tuesday after N’Korea’s missile launch has quietly eased.

EURUSD is currently at 1.1972 Realtimeforex’s TraderTip is expecting a pull back to 1.1959/1.1922 as long as resistance at 1.2021/1.2046 holds.

Later today the highlights we have from the economic docket are the German CPI, and US Annualized GDP.