Currently the markets are dominated by two main topics. One is the developments in the ongoing trade war between China and the United States, which has far-reaching consequences for the global economy; the second one are this week’s fundamental reports from the United States, which affect pairs with the dollar and commodity prices.
With regard to the trade war, analysts are keeping an eye on the negotiations between China and the United States which begin today. While the two countries are willing to meet and discuss a possible trade agreement again, China has repeatedly failed to meet the US demands and reform its economy in a way that is convenient for the States. President Trump, on the other hand, is unlikely to back any agreement which isn’t exactly to his taste. Overwall, while the news of the talks was enough to calm the markets a bit over the past week, the negotiations will likely be disappointing.
In other news, today we also expect the minutes from the August 1 meeting of the Federal Reserve. This report has a high importance level, but analysts are more or less certain of what it would say. We expect it to confirm that the US economy is healthy and ready for another interest rate increase in September.
