1. Forex Preview: USD Higher
The dollar held strong today after some better-than-expected U.S. retail sales data and on statements from the Fed that there is no need for any inter-meeting action, meaning nothing will happen before the next fed meeting. Elsewhere, the EUR dipped to 1.11 and may be in for a further decline to the recent July lows.*
2. Donald Trump Warns China
Donald Trump boasted over twitter that the US economy is strong and that China will have its first recession or worse in years if they do not make a deal with the US, he also offered to help resolve the “Hong Kong” problem in a “humane” manner. Editor-in-chief of the Chinese Global Times (a tabloid run by China’s ruling Communist Party), Hu Xijin, responded that the U.S. president “hasn’t linked trade talks with the Hong Kong problem” and that it wouldn’t solve anything even if he did, he also wrote of a politically unified China that is prepared for a prolonged war.**
3. Global Markets Edge Higher
European markets opened in the green on Friday with the possibility of heading higher later in the day as investors monitor Treasury yields for clues on a possible recession. US retail sales came in well yesterday helping US stock markets push higher. Today’s Michigan sentiment may help further speed up the recovery. Also, we have options maturing today on the NY cut which may influence positioning more than on a usual Friday.**
4. Oil Prices Recover
Meanwhile, safe-havens and specifically gold prices edged lower on Friday as risk appetite temporarily returned to the table. Gold prices are still holding above the $1500 mark and appears to still have a long way up to go as global tensions rage on.***
5. Gold Prices Dip
Meanwhile, oil prices rose on Friday following two days of declines, buoyed by a set of solid U.S data. Long-term, oil prices are seen edging lower as a strong dollar and diminishing demand continue to put pressure on crude and brent.****
You can find and trade CFDs on all of the above-mentioned assets on BDSwiss Forex/CFD platforms.
Sources:
*Financial Times Aug 16, 2019 03:07 AM ET
**Reuters Aug 16, 2019 3:53 AM ET
***CNBC Aug 16, 2019 2:48 AM ET
****Investing Aug 16, 2019 05:20 AM ET
