Forex Today: Relative calm after yield curve inversion, focus on trade and Italy's political deadline

Yohay Elam FXStreet

Here is what you need to know on Wednesday, August 28th:
- Markets are calm after suffering on Tuesday. The US 10-year to 2-year bond yields remain inverted in a sign of an upcoming US recession. Reports suggest that China is preparing for the worst in trade wars as mistrust deepens.
- Italy: Today is the deadline for forming a new government and optimism is growing as the Democratic Party has seemingly removed its opposition to returning Giuseppe Conte as prime minister. EUR/USD remains on the back foot amid economic fears.
- Brexit: Opposition parties have agreed to use legislation to block a no-deal Brexit after Labour leader Jeremy Corbyn dropped his demand for a motion of no-confidence and his aspirations to become PM. GBP/USD is holding onto the gains.
- Australia: Construction Work Done missed with a drop of 3.8% in the second quarter, weighing on the Aussie. NZD/USD is also pressured.
- Gold and oil, are little changed.
- Cryptocurrencies remain stable despite reports that China may issue its cryptocurrency as soon as November.

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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