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