North Korea: US and South Korean joint military drills violate agreement

Early Tuesday morning in Asia, North Korean Foreign Ministry was crossing the wires, via their local state media, while revealing its dislike for the US and South Korea’s joint military drill.

Key quotes

• US And South Korean joint military drills violate agreement.
• We are committed to dialogue but could take a new path.
• US exercises are a flagrant violation.
• Warns of a heavy price for ignoring warnings.

FX implications

Harsh statements from the hermit kingdom follow another unidentified projectile test, third in nearly two-week, and increases the political tension between the US and North Korea, which in turn push traders towards risk-safety.