Introducing the key events of Friday, August 16th:
Today, the risk sentiment has strengthened amid Trump’s optimistic comments on trade, and a strong US retail sales report has eased concerns about a recession.
Markets ignored the depreciation of the Chinese yuan and the chaos reigning in Hong Kong, as Treasuries and US stocks rose. Asian indices traded in different directions, which restrained the growth of USD / JPY.
USD / JPY steadily kept above 106.00, as USD retained the points scored during the overnight session, and the yield on 10-year government bonds in Japan noted a three-year low. Gold retreated to $1.520, while oil prices rose amid a risk appetite.
In anticipation of the opening of Europe, the Ozzy became the main leader among currencies, and the Swiss franc became the main outsider.
50 members of the opposition Labor Party are ready to join the "dissenting" Tories to stop hard Brexit. British Finance Minister S. Javid will travel to Berlin to meet with his counterpart Scholz to discuss the Brexit deal.
UK retail sales unexpectedly rose to 0.2% m/m in July, so the state of the UK economy is much better than anticipated.
GBP / USD has taken 1.2100, while EUR / USD has been flirting with 1.1100 after statements by ECB representative O. Ren that stimulation of the economy may be more intense than markets expect.
Cryptocurrencies consolidated. Bitcoin is trying to take the mark of 10 thousand.