Forex Today: Falling Treasury yields still signal caution, UK/US Retail Sales in focus

Dhwani Mehta FXStreet

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.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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