Forex Today: China strikes back with yuan devaluation, yen surges, commodity currencies crash
Here is what you need to know on Monday, August 5th:
- China retaliates to US President Donald Trump's announcement of new tariffs. The world's second-largest economy has allowed the Chinese yuan to fall beyond 7 to the US dollar. Moreover, Beijing has asked state-owned companies to stop buying US agricultural goods. Reports suggest China may not resume trade talks.
- Stocks and bond yields are falling. USD/JPY dropped below 106. Oil prices and commodity currencies are on the back foot alongside. EUR/USD is stable.
- The US Non-Farm Payrolls met expectations at 164K jobs gained while wages beat projections with 0.3% MoM. US ISM Non-Manufacturing Index is on the cards today.
- UK: The UK government is pledging funds toward the National Health Service in a move that is seen as preparations for early elections. The government's majority was squeezed after by-elections last week. Special adviser Dominic Cummings said that parliament will be unable to stop a no-deal Brexit. Markit's UK Services PMI is due.
- Bitcoin and other cryptocurrencies have enjoyed significant gains over the weekend with BTC/USD topping $11,500.
- Gold has extended its gains above $1,450.
Author
Yohay Elam
FXStreet
Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.
