Forex Today: Trade calm tested and UK opposition tries stopping a hard Brexit
Here is what you need to know on Tuesday, August 27:
- Markets remain relatively steady after US President Donald Trump and Chinese Vice Premier Liu He talked about calm on the trade front. However, falling US bond yields imply that concerns prevail. The clock is ticking toward new American tariffs due out on September 1st. USD/JPY is sliding and gold is rising.
- Brexit: UK traders return from a bank holiday and opposition leaders meet in parliament to plot the next steps to stop a no-deal Brexit. Labour wants a vote of no confidence and Jeremy Corbyn as interim prime minister while some of the other parties reject the idea.
- Brexit: PM Boris Johnson returns with some optimism from the G-7 gathering after the EU agreed to listen to suggestions on the backstop. He refused to rule out suspending parliament to ram through a hard Brexit. GBP/USD is in a wait-and-see mode.
- Italy's 5-Star Movement and the Democratic Party have expressed optimism on forming a government despite disagreements on the budget. Outgoing PM Giuseppe Conte may be returned to his job. President Sergio Mattarella has given the parties an extension of the deadline until Wednesday evening.
- German GDP has been confirmed at -0.1% QoQ and 0% YoY in the second quarter after yesterday's IFO Business Climate Index for August showed another drop in sentiment.
- The Conference Board's US Consumer Confidence gauge is projected to show a minor decline in sentiment, albeit from high levels.
- Cryptocurrencies have been stable with Bitcoin holding above $10,000.
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.
