China strikes back with yuan devaluation, yen surges, commodity currencies crash
Here’s what that you must know on Monday, August fifth:
– China retaliates to US President Donald Trump’s announcement of latest tariffs. The world’s second-largest economic system has allowed the Chinese language yuan to fall past 7 to the US greenback. Furthermore, Beijing has requested state-owned corporations to cease shopping for US agricultural items. Studies counsel China might not resume commerce talks.
– Shares and bond yields are falling. USD/JPY dropped beneath 106. Oil costs and commodity currencies are on the again foot alongside. EUR/USD is steady.
– The US Non-Farm Payrolls met expectations at 164Ok jobs gained whereas wages beat projections with 0.3% MoM. US ISM Non-Manufacturing Index is on the playing cards right this moment.
– UK: The UK authorities is pledging funds towards the Nationwide Well being Service in a transfer that’s seen as preparations for early elections. The federal government’s majority was squeezed after by-elections final week. Particular adviser Dominic Cummings mentioned that parliament shall be unable to cease a no-deal Brexit. Markit’s UK Companies PMI is due.
– Bitcoin and different cryptocurrencies have loved vital positive factors over the weekend with BTC/USD topping $11,500.
– Gold has prolonged its positive factors above $1,450.