The markets froze in anticipation of new news in relations between North Korea and the United States. Many traders prefer safe haven assets, such as the Japanese yen and gold, which continue to grow for the second day.
Any news will be a catalyst that can lead to further sales in risky assets throughout the week.
The absence of important fundamental statistics in the first half of the day also affects the actions of traders and investors.
In the second half of the day, there were data on labor productivity in the US in the second quarter of this year, which has grown significantly, being better than economists' forecasts.
According to the US Department of Labor, non-agricultural labor productivity in the second quarter of 2017 increased by 0.9% after rising to 0.1% in the previous quarter. Economists projected growth of only 0.6% compared with the first quarter.
Compared to the same period last year, productivity increased by 1.2%. The volume of production in the 2nd quarter increased by 3.4% compared to the first quarter, while the number of hours worked increased by 2.5%.
Such data once again show that the American economy is on the path of gradual economic growth, and the recent recessions that have been observed in this sector were only temporary.
As for the technical point of view, the breakthrough of the important support level of 1.1720, which I advised to pay attention to in my morning forecast, will lead to the further sale of the European currency with the new goals of 1.1670 and 1.1620.
The gold prices today continued their growth, which was observed at the end of yesterday's North American session. As I noted above, demand grew against the backdrop of increased geopolitical tensions between the US and North Korea.
The quotations have already climbed to the monthly highs around 1272, and the breakthrough of this level will lead to larger purchases already from institutional players. With this scenario, you can expect to update levels to 1280 and 1294.
The statements by US President Donald Trump and the Government of North Korea may allow upgrading the above levels in the near future.
The North Korea yesterday announced the possible launch of a missile in the American island of Guam in the Pacific Ocean. Donald Trump, in turn, promised a return fire, in case of continuing provocations on the part of North Korea.
