Where there is any change from North American closing levels, the USD is a little firmer. EUR/USD is down at .13940 from around 1.3980, while USD/JPY is up at 95.45 from around 95.00. Likes of GBP/USD, AUD/USD and USD/CAD are effectively unchanged.

North Korea has threatened military action in response to South Korea joining a programme to seize weapons shipments and has said it’s no longer bound by the 1953 armistice that ended the Korean War. But when all is said and done, the North Korean situation isn’t having a large impact of financial markets.

USD/JPY has moved higher, underpinned by ongoing Japanese investment trust selling of JPY against a variety of high yielding, mainly emerging market, currencies, including likes of Turkish Lira, Brazilian Real and South African Rand.

Risk sentiment remains in pretty good shape, bolstered by a run of impressive US data releases Tuesday, and this continues to underpin likes of sterling, aussie, canadian dollar and to a very slightly lesser degree euro. Asian stocks performed well overnight.