Wage growth has risen to 3.7%, buoyed by surprise second-quarter jobs growth. Data from the Office for National Statistics showed that the level of employment rose to a record 32.81 million between April and June with 115,000 jobs created.
Chinese yuan
Today the Chinese yuan (CNY) finally broke through to the downside to the psychologically important level of 7.0 to the US dollar. 7.0 was a clear line in the sand defended by monetary authorities in Beijing since late 2016. While we are not currency experts, we would not be surprised to see the yuan weaken further now that 7.0 has finally been breached.
US increases sanctions against Russia
The US has announced a fresh round of sanctions against Russia, effective from the 26th August. These restrictions represent the 2nd round of sanctions in line with the Chemical and Biological Weapons Control and Warfare Elimination Act of 1991 (CBW Act). The announced sanctions include US opposition to the financial or technical assistance to Russia provided by international financial institutions, restrictions to exports of dual-use chemical and biological items and, most importantly: the prohibition of US financial institutions to participate in FX-denominated financing of the Russian government.
US Increases China Trade Tariff
President Trump has revealed plans to intensify his trade war with China by imposing tariffs on another $300 billion of its exports. Oil prices fell after the latest escalation in the dispute between the world’s two largest economies.