Here is what you need to know on Tuesday, August 11:
The US dollar is mixed as stock markets remain upbeat.
President Trump touted slashing capital tax cuts and falling coronavirus cases are boosting sentiment. Various data points are eyed.
The fiscal impasse continues: Republicans and Democrats are open to returning to the negotiating table but have yet to resume talks. President Donald Trump's coronavirus executive order on unemployment benefits includes participation from states – which are struggling with debt, and that may not work.
Sino-American tensions: The US condemned Hong Kong's arrest of Jimmy Lai, a local pro-democracy media mogul. China slapped sanctions against Senators Ted Cruz and Marco Rubio in response to America's moves against Hong Kong leader Carrie Lam. Markets are more concerned about the trade deal. Negotiators will take stock of the deal later this week.
Trump touted cutting capital gains taxes, claiming it could boost jobs and reversing his stance on the topic. He previously said it would not help the middle class, but now the White House is considering an executive order. His words supported stocks.
US coronavirus cases rose by fewer than 50,000 in Monday's tally, potentially a result of the "weekend effect" yet still confirming the downtrend. Infections are stable or falling in most states, potentially allowing for the economy to pick up. US Producer prices are due out later in the day.
GBP/USD is edging lower after mixed UK jobs figures. While the unemployment rate remained at a low 3.9% in June, jobless claims jumped y 94,400 in July.