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August in the Markets.

Global uncertainty affects the markets in August.

Bank of England Reports Published in August 2019

Asset Purchase Facility Quarterly Report – 2019 Q2 Read the report

In the interests of openness and transparency, the Bank of England publishes a quarterly report on the transactions carried out as part of the Asset Purchase Facility.

Resilience of trading networks: evidence from the sterling corporate bond market – Read the report

The bank studies the network structure and resilience of the sterling investment-grade and high-yield corporate bond markets. Using proprietary, transaction-level data, this report analyses the key properties of the trading networks in these markets.

The impact of Brexit on UK firms – Read the report

The bank’s working paper finds evidence for smaller negative between-firm effects as more productive, internationally exposed, firms have been more negatively impacted than less productive domestic firms.

Trade War Drives Bystanding Asian Nations Towards Recession

From: The BBC

Rising fears about the health of the global economy have prompted talk of recession, spreading anxiety about jobs and growth.

The US-China trade war is casting a shadow over the world economy and warning signs of a looming downturn have flashed on financial markets.

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Yen Strength Amid Market Tumult to Keep BOJ Target Out of Reach

From: Daily FX

The Japanese Yen has played its customary haven role as the financial world frets US-China trade war and bond-market predictions see global recession in the yield curve.

Could Yen strength now be a headache too far for the Bank of Japan?

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Sterling Struggles for Footing

From: Daily Forex

The Pound Sterling continued to come under pressure as the likelihood of a hard crash out of the EU escalate after the Prime Minister limited the Parliament’s ability to work out a compromise before the October 31st deadline.

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European Stocks End Brutal August on a Positive Note

From: Reuters

European stocks scaled fresh one-month highs on Friday, wrapping up a brutal month on a positive note as investors took comfort from Chinese and U.S. willingness to return to trade talks.

The pan-European STOXX 600 index rose 0.7% to hit its highest level since Aug. 2, building on the previous day’s rally after both China and the United States indicated they were discussing the next round of negotiations in September.

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A Tale of Two Crises – London and Milan Stocks Diverge

From: Reuters

Italy’s stocks are ending August on a high after the formation of a new coalition government, while Britain’s equity market is heading for one of its worst months since before it voted to leave the European Union more than three years ago.

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FX Rates in August

GBP/EUR

August GBP vs EUR Currency Fluctuations

Aug High: 1.1066
Aug Low: 1.0768
Aug End: 1.1034

GBP/USD

August GBP vs USD Currency FluctuationsAug High: 1.2269
Aug Low: 1.2054
Aug End: 1.2178

EUR/USD

August EUR vs USD Currency FluctuationsAug High: 1.1216
Aug Low: 1.1039
Aug End: 1.1037