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North Korean state media quoted the Foreign Ministry spokesperson while flashing signs of an upcoming cold war between the hermit kingdom and the US.  The news report says that the US’ recent mid-range cruise missile test and plans to deploy F-35 jets and offensive military equipment around the Korean peninsula were “dangerous” moves that would “trigger a new cold war” in the region.

Key quotes

  • North Korea remains unchanged in its position to resolve all issues through dialogue and negotiation but dialogue accompanied by military threats is of no interest to us.
  • Dangerous and unusual military moves are now on the horizon, which would trigger a new cold war on the Korean peninsula and in the region.

FX implications

The news turns down recent optimism surrounding the US-North Korea relations after comments from the US envoy to the nation, which in-turn favors safe-havens.