Here is what you need to know on Wednesday, August 28th:
– Risk aversion took over in the US after, amid uncertainty related to the trade war, with majors holding within familiar levels. EUR/USD closed marginally lower, as the common currency came under selling pressure following German’s Q2 GDP confirmed at -0.1%.
– UK opposition MPs agreed on a strategy to block a no-deal Brexit. Jeremy Corbyn, Labour leader, said that his party won’t seek a no-confidence vote on UK PM Johnson, but instead prioritize MPs’ attempts to use legislation to avoid a no-deal. Sterling gained on the news.
– Fears of a US recession lifted by the inversion of the yield curve, with the benchmark yield on the 10-year Treasury note at around 1.47% and that of the 2-year note at 1.52%.
– Yen and gold appreciated with the latest nearing 1,555.Oil gained, although commodity linked currencies gave up to risk aversion.