Here is what you need to know on Thursday, August 30th:
– Brexit: GBP/USD remains on the back foot after prime minister Boris Johnson slashed the number of days parliament will have ahead of the Brexit deadline of October 31st. Courts are expected to hear multiple challenges and the opposition is trying to move fast.
– Trade wars: US Treasury Secretary Steven Mnuchin has expressed optimism that trade talks will resume while White House adviser Peter Navarro said it will take time. The optimism helps stabilize markets ahead of new tariffs which are due on September 1st.
– Italy: Prime minister Giuseppe Conte will be given the mandate to form a new government, this time with the center-left PD as the coalition partner of the 5-Star Movement. The new coalition and preventing new elections provide some calm for markets.
– Oil prices are off the highs as fears about global demand have replaced optimism from the drop in inventories.
– The economic calendar features preliminary German inflation figures and more importantly, the second read of US GDP, where a downward revision to 2% is projected.
– Cryptocurrencies are on the back foot with Bitcoin trading around $9,600 and Ethereum at $170.
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