Trade Talks, Pound and Gold: The week in 60 seconds | FXTM | 12/08/2019

Trade Talks, Pound and Gold: The week in 60 seconds | FXTM | 12/08/2019


Hi folks! Stock markets across the globe are mixed despite trade developments taking a turn for the worst. It feels like we’re back at square one again after Donald Trump has said that potential negotiations with China may not happen in September. In the United Kingdom, the British Pound has weakened to a ten-year low against the euro above 93 pence. Last week’s disappointing GDP print has fuelled concerns over the UK entering a recession. A recession can be defined as two consecutive quarters of a contraction. We only halfway there. How long would it take for the UK to rebound if we do have a recession? Well let’s start from square one. It has been three years since the brexit vote. It’s gonna take many more years for the UK to secure a deal and a couple more years for the effects of the deal to be reflected in the UK economy. So if the UK was to experience a recession due to hard Brexit, it could take anything from five to ten years to recover. Looking at the commodities market, Gold prices are pushing higher this morning. Gold has the potential to test $1520 and higher this week. My name is Lukman and this is your week in 60 seconds.

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