Forex Today: Gold is shining amid three global concerns, UK jobs and US inflation eyed

Yohay Elam FXStreet

Here is what you need to know on Tuesday, August 13th:
- The flight to the safety of bonds continues with US 10-year yields trading closer to 1.60%. Concerns about Italy, Hong-Kong and Argentina weigh. Currency movements are limited, but Gold is hitting new highs above $1,520.
- Hong Kong: Economic disruption has intensified as the government has canceled outgoing flights after protesters swarmed the airport. Intervention by China may aggravate US-Sino tensions. Both sides are still expected to meet for new talks in September.
- US Consumer Price Index is in the limelight today, and expectations stand at a repeat of the 2.1% Core CPI read. The Fed cut interest rates due to trade tensions and low inflation, and any deviation may impact the dollar and broader markets.
- Italy: The Senate has delayed the no-confidence motion, and it will likely take place on August 20th. Efforts to prevent an early election are still in play, but the euro zone's third-largest economy will probably head to the polls in October. Fears of a new clash with the EU weigh on the euro.
- The German ZEW Economic Sentiment is forecast to show a deteriorating mood among businesses.
- Argentina: The peso fell some 25% against the US dollar at one point on Monday, and local stocks closed 48% lower in dollar terms after primary elections have resulted in a resounding victory for the populist Fernandez-Fernandez team against incumbent Macri. General elections are scheduled for October. Other Latin American currencies have also felt the pressure.
- UK: Prime minister Boris Johnson and his government expect the pro-Remain camp to act on September 9th to attempt to block a no-deal Brexit and the EU to wait for that effort to fail before offering a new deal. In the meantime, US National Security Adviser John Bolton has promised the UK quick "sector by sector" deals after Brexit.
- The UK jobs report is due out later and projected to show an acceleration in wage growth in June.
- Cryptocurrencies are marginally lower in calm trading.

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.

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