Forex Today: Falling Treasury yields still signal caution, UK/US Retail Sales in focus
|Here is what you need to know on Thursday, August 15th:
- The sentiment remains mixed amid signs of some calm on the US-China trade front. US President Trump offer Beijing help to resolve the Hong Kong problem. China fixed the Yuan higher for the second straight day.
- US equity futures saw relief recovery but Treasury yields extended the rout. 30-year T-yields dropped below 2% for the first time ever. Mounting recession fears loom.
- On Wednesday, the 10-year Treasury yields fell below the two-year yields, inverting the yield curve for the first time since 2007, fanning US recession fears.
- USD/JPY held steady below 106.00 amid risk-off action in the Asian equities. Gold consolidated its gains around $ 1520 while oil prices looked to stabilize.
- Upbeat Australian jobs growth boosted the AUD/USD’s bounce while EUR/USD recovered above the 1.1150 level.
- Brexit: UK's Labour vowed to bring down PM Johnson and lead temporary government. The UK Tory Tugendhat suggested that PM Johnson could execute surprise August Brexit.
- UK CPI accelerated to 2.1% y/y after Tuesday’s upbeat jobs report. The focus shifts to today's Retail Sales data, which is expected to show a sharp decrease.
- Cryptocurrencies extended their losses. Bitcoin dropped below $ 10k mark.
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