International Forex News - August 20

Trump Announces the Harshest Economic Sanctions on Iran in History

August 20, News: US President Donald Trump said that he had given Iran more opportunities than anyone else to reach an agreement, but that Iran had missed that opportunity. He therefore announced what he described as the harshest economic sanctions ever imposed on Iran, amounting to unprecedented economic warfare and isolation. Iran's navy has disappeared, its air force has been destroyed, its military factories are now in ruins, its currency has become worthless, and the country as a whole is in a precarious position. Any country allowing its financial institutions, companies, airports or government entities to provide any form of assistance to Iran will face severe economic consequences. Oil smuggling, swap facilities, cash transfers, currency exchange houses, ship registration and shell companies must all cease immediately. This will be an "Economic D-Day," and all allies need to stand with the United States to isolate and defeat the Iranian threat. Iran will never possess nuclear weapons.

Probability of the Federal Reserve Keeping Rates Unchanged in September Is 67.3%

August 20, News: According to CME FedWatch, the probability that the Federal Reserve will keep rates unchanged by September is 67.3%, while the probability of a cumulative 25-basis-point rate hike is 32.7%. By October, the probability of rates remaining unchanged is 58.3%, the probability of a cumulative 25-basis-point rate hike is 37.3%, and the probability of a cumulative 50-basis-point rate hike is 4.3%.