Here is what you need to know on Friday, August 7:
Trump's executive order against TikTok and WeChat has dampened the market mood and strengthened the dollar. Fiscal stimulus have made limited progress and investors are now focused on July Non-Farm Payrolls, which carries high uncertainty amid the resurgence of coronavirus.
Sino-American relations: President Donald Trump has signed an executive order which forced China's ByteDance to divest TikTok – potentially selling the popular video network to Microsoft. The action move against WeChat – a major Chinese platform – could result in disallowing the app in the US.
The White House's action comes one week ahead of talks between trade officials, meant to take stock of the Phase One accord and as Trump trails rival Joe Biden in the polls.
The dollar has been rising across the board, including against gold, which is trading close to $2,050 after hitting $2,074.98 – a new all-time high.
The US president also threatened to use an executive order to force an agreement on a fiscal relief package. Negotiations between Republicans and Democrats have made limited progress, one week after federal unemployment benefits expired.
NFP uncertainty: The economic calendar is showing that Non-Farm Payrolls are set to show an increase of around 1.5 million jobs in July, but weak employment components in purchasing managers' indexes and a downbeat ADP labor market figure have clouded the picture. The resurgence of coronavirus since mid-June has likely limited the drop in the unemployment rate as well.
GBP/USD is trading closer to 1.31 down from the highs closer to 1.32 recorded after the Bank of England painted a somewhat rosier picture of the recovery in the UK and pushed negative rates to the backburner.
EUR/USD is hovering under 1.1850, partly impacted by rising COVID-19 figures in Germany, France, Spain, and other countries.
Canada also publishes its labor figures for July, with another recovery on the cards. The northern nation gained 952,900 positions in June and a more moderate increase is now on the cards.
The US slapped new aluminum tariffs on Canada despite the USMCA trade deal. Canada's Deputy Prime Minister Chrystia Freeland said that retaliation is on the cards.
Cryptocurrencies are stable with Bitcoin around $11,200 and Ethereum around $400.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.