Forex Today: Trade reprieve provides relief, German recession fears grow, UK inflation eyed


Here is what you need to know on Wednesday, August 14th:
- The mood remains positive amid signs of detente between China and the US. Beijing is reportedly sticking to the planned September trade talks in Washington. China fixed the yuan higher. USD/JPY holds onto its gains and so do commodity currencies. Gold has consolidated its losses while oil is stable on higher ground.
- On Tuesday, US Trade Representative Robert Lighthizer positively surprised markets by announcing that tariffs on some Chinese goods will be postponed from September to December. The White House's admission that the move is intended to help shoppers is an admission that levies do not only hurt China.
- The world's second-largest economy is already hurting. Industrial output rose by only 4.8% YoY – the slowest in over a decade. Retail sales also fell short of expectations. 
- The Hong Kong airport has reopened after further chaos. The clash between pro-democracy protesters and the police has triggered concerns in the US and adds to trade-related tensions.
- The German economy contracted by 0.1% in the second quarter, as expected. Recession fears remain prevalent.
- Brexit: Former Chancellor of the Exchequer Phillip Hammond said that a hard Brexit would be a "betrayal of the 2016 referendum result" as rhetoric heats up.
- UK wage growth has accelerated to 3.7% while unemployment rose to 3.9%. The focus shifts to today's inflation report which is projected to show a minor deceleration. 
- Cryptocurrencies have been extending their losses. The US-Sino trade reprieve and the announcement from Barclays that will stop working with Coinbase weigh on prices. 
 

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.

Feed news

Latest Forex News

Editors’ Picks

Bears ignore Aussie holidays, cheer coronavirus news at fresh multi-week low near 0.6815

AUD/USD drops to 0.6814, with an intra-day low of 0.6811, during the early Monday morning in Asia. The fears of China’s coronavirus outbreak are dominating the market’s risk sentiment off-late.

AUD/USD News

USD/JPY: Coronavirus bearish gap breaks below 109

USD/JPY has dropped heavily in the open, breaking below the 109 handle to print a fresh low of 108.88 as traders prepare for a risk-off week when considering the implications of the Coronavirus. 

USD/JPY News

Are you anxious about Coronavirus? Well, so are the markets

There's so much we don't know about Coronavirus, which increases the level of concern from public health officials, you & I as well as the markets and we can expect a risk-off start to the week ahead of a pretty major schedule.

Read more

Gold rebounds above $1560

The XAU/USD pair dropped to a daily low of $1556.70 during the European trading hours as the easing worries over coronavirus becoming a global epidemic and a broad-based USD strength put the pair under bearish pressure.

Gold News

GBP ends week on a weak note despite upbeat PMI data

The GBP/USD pair spiked to its highest level since January 7th at 1.3174 on Friday with the initial reaction to the upbeat PMI data from the UK. The pair could remain choppy ahead of BoE’s policy decision. 

GBP/USD News

Forex MAJORS

Cryptocurrencies

Signatures