What you need to know on Wednesday, August 7:
We are seeing a stable market, today. China has stabilized USD/CNY below 7.00. White House economic adviser, Larry Kudlow, has expressed hope for the trade talk to continue in September.
Safe-haven assets like Japanese yen gained profits and gold hits its highest level since 2013, $1.490.
In his speech, member of Federal Bullard, pointed out that federal is not responsible for trade war. He didn’t expect further interest rate cuts in future.
The New Zealand dollar fell 2% after the market was shocked by 50 points rate cut. Reserve Bank of New Zealand Governor pointed out to the uncertainty around trade war and how it can damage business confidence.
AUD/USD with the drop of NZD, fell below 0.67, its lowest level in a decade. Reserve Bank of Australia didn’t change interest rates on Tuesday but they are expected to act.
UK has blamed the EU for austerity and PM Boris Johnson said to his European counterpart that Theresa May’s agreement should be scrapped.
Commodities fell by entering of Crude Oil to bear market.