Here is what you need to know for Monday, August 12th:
– Trade: Reports suggest that talks between the US and China may not resume. Goldman Sachs has said that Chinese stocks may be overvalued as outflows may hurt it while the chances of a US recession have risen.
– The Japanese yen has been resuming its rises with UDS/JPY getting comfortable in the 105 handle. The move may be related to trade tensions but other markets are quiet. Several Asian markets are closed for a holiday.
– UK: The British media reports that MPs may try to block PM Boris Johnson from leaving the EU without a deal by forcing the government to seek an extension to Brexit. Johnson has canceled all vacations in preparations for exiting the EU and perhaps for new elections. GBP/USD is close to 1.2000.
– Italy: Lega leader Matteo Salvini’s bid for fresh elections may run into trouble as his current coalition partner and opposition parties may team up to prevent an early vote. EUR/USD may move on developments in the euro zone’s third-largest economy.
– Cryptocurrencies: Bitcoin has been stable while Altcoins have been moving higher over the weekend.