Here is what you need to know on Tuesday, August 20th:
– Markets remain calm as the wait toward Fed Chair Jerome Powell’s speech on Friday continues. President Donald Trump called the Fed to slash rates by 100bp and introduce QE, while Boston Fed President Eric Rosengren wants to wait and see.
– China marginally weakened the yuan – within expectations. Hong Kong leader Carrie Lam offered protesters a national dialogue as tensions wane.
– Australia: The Reserve Bank of Australia’s meeting minutes repeated the same messages, saying that a weaker AUD supports exports and tourism. AUD/USD is marginally higher.
– UK: Prime minister Boris Johnson offered to refrain from setting up customs controls in Northern Ireland if the EU does the same in the Republic of Ireland. European Council President Donald Tusk rejected Johnson’s request to renegotiate the Irish Backstop.
– Italy: PM Giuseppe Conte will face lawmakers today and may resign after coalition partners The League and the 5-Star Movement have fallen out. Early elections or a government between the 5-Star and the opposition Democratic Party are on the cards.
– The economic calendar is light today, leaving the focus on politics.
– Cryptocurrencies are on the back foot after rising on Monday.
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