OspreyFX’s Foreign Trading News Roundup for Today
Here’s the daily roundup of OspreyFX’s foreign trading news that may affect the markets, tailor made for our OspreyFX customers.
US-China talks to resume
The US and China have agreed to resume face-to-face negotiations in a bid to ease tensions in their rapidly escalating trade war. This was revealed in statements from both Washington and Beijing on Wednesday night. The decision to press ahead with a new round of direct talks came after a call between Liu He, China’s vice-premier, and top US officials.
Hurricane Dorian leaves destruction in its path
Bahamas left stunned Hurricane Dorian made landfall in the Bahamas on Sunday, lingering for days and leaving at least 20 dead. The devastating hurricane damaged homes, harbours, shops and landing strips. As people assess the damage, there are fears even the groundwater has been contaminated by the storm. Dorian is now threatening the US East Coast although it has since been downgraded to a Category 2 storm.
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New government for Italy
Italy’s new coalition got the green light after rounds of tortuous negotiations between the Five Star Movement (M5S) and the Democratic Party (PD). President Sergio Mattarella is to swear in a new government which is expected to be less confrontational towards the EU. This development has pushed the anti-migrant populist leader Matteo Salvini’s League party back into opposition.
Federal Reserve Chairman hints at rate cuts
It looks like the US Federal Reserve is prepared to cut interest rates at least twice this year.
This is in response to a slightly flagging economy where manufacturing output fell for the first time in three years. Fed Chairman Michael Powell is scheduled to speak in Switzerland, at the University of Zurich, about the U.S. economic outlook and interest-rate policy this Friday.
Incidentally, this is only a few hours after the government releases the key August employment report. It’s also a few more hours before the Fed goes silent to prepare for its policy meeting.
Argentina’s crisis continues
Following several discussions this week, some of Argentina’s largest international creditors; T Rowe Price, Eaton Vance and GMO amongst others, came to the conclusion that negotiations with Macri’s government would be futile. These were brought on following informal discussions this week about President Mauricio Macri’s decision to put off the payment of $101bn of debts.