Forex Today: Trade wars paint markets in red, Brexit looks worse, and central banks are limited

Here is what you need to know on Monday, August 26th:
- The US-Sino trade war is painting global markets in the red. The US dollar is losing some ground to major currencies as yields plunge, while it gains against commodity currencies. Gold is rising and oil is falling.
- Chinese Vice Premier and top negotiator Liu He called for calm and said foreign investors are welcome. He responded to President Donald Trump's call to US companies to leave China. The escalation began on Friday when China detailed its counter-tariffs and Trump announced new levies after markets closed. Trump said he had second thoughts on the levies but the White House later clarified that he may regret not slapping more tariffs.
- The escalation overshadowed Fed Chair Jerome Powell's speech, in which he opened the door to cutting rates again –but also said hinted that monetary policy cannot solve all the problems. 
- Brexit: The tone has worsened over the weekend. European Council President Donald Tusk said that UK prime minister Donald Tusk "would not like to be Mr. no-deal Brexit" – pushing the blame to the UK and saying there will be no "mini-deals." Johnson hit back by saying that the responsibility lies with the EU and suggested that the UK will not pay the £39 billion divorce bill. Moreover, there are reports that Johnson is seeking legal advice on how to bypass parliament. UK traders are on holiday today.
- Cryptocurrencies have been on the rise, with Bitcoin settling above $10,000.
- Germany's IFO Business Climate will likely show deteriorating sentiment in the euro zone's largest economy.
- US Durable Goods Orders for July are expected to show moderation in investment growth.

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD holds above 1.10 post-hawkish Fed cut

EUR/USD manages to hold above the1.10 after the Fed cut rates but signaled no further rate reductions. The bank acknowledged the strong labor market and robust consumption. However, it is worried about investment.


GBP/USD: Rising wedge at the top inflates downside risk

GBP/USD portrays a short-term rising wedge bearish formation while trading near 1.2475 during the Asian session on Thursday. One-week-old rising wedge surrounding monthly tops questions buyers.


USD/JPY keeps losses below 108.00 as BOJ disappoints the doves

USD/JPY keeps the losses below 108.00, as the Japanese Yen remains on the front foot in reaction to the Bank of Japan's (BOJ) status-quo that came in as a disappointment for the doves. 


Gold: Indecisive market, focus on today's close

Gold is currently trading at $1,480 per Oz, representing 0.21% drop on the day. On Wednesday, the yellow metal witnessed two-way business before ending the day with moderate losses at $1,494.

Gold News

Bitcoin dives below $10,000

Bitcoin has lost its cool towards the end of the Asian session on Thursday. After managing to defend $10,000 over the last few days, the granddaddy of cryptos has plunged below several other support areas including $9,900 and $9,800. 

Read more