How to Avoid Slippage in Trading Do CFDs have slippage
Understand trading slippage, its key causes and how it affects CFDs, plus practical ways to reduce execution risk using order types, liquidity and trading infr…
AUG 13, 2026
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Global Economic Snapshot
United States
- Pending home sales fell 0.8%, missing expectations for a 1.3% rise.
- Initial jobless claims came in at 206K, better than the 225K estimate.
- The trade deficit widened to $70.3B vs $55.5B in December, larger than expected.
- Industrial production rose 0.7% v/s 0.4%, above forecasts.
- Durable goods orders -1.4% vs -2.0% expected
Germany
- Manufacturing PMI returned to expansion at 50.7 vs 49.5 expected.
- PPI fell 0.6% vs 0.3%, against expectations for a rise.
- ZEW economic sentiment index 58.3 vs 65.2 expected
Japan
- Core CPI rose 2.0% y/y, slowing down to its lowest level since early 2022.
- Machinery orders surged 19.1% vs 4.5%, sharply beating forecasts.
United Kingdom
- ILO unemployment rate edged up to 5.2%, slightly above expectations.
- Retail sales jumped 1.8% vs +0.2% m/m, well ahead of estimates.
Canada
- CPI rose 2.3% y/y, just below forecasts.
- Manufacturing sales increased 0.6%.
New Zealand
- The RBNZ kept its cash rate unchanged at 2.25%, as expected.
Lagarde Pushes Back on Succession Speculation
Christine Lagarde said she expects to remain President of the European Central Bank until October 2027, pushing back against speculation of an early resignation.
Recent reports had suggested she could step down before her term ends, a move that would have allowed French President Emmanuel Macron to influence her successor ahead of France’s 2027 election.
Lagarde declined to comment directly on those reports but made clear she intends to complete her mandate. The issue remains politically sensitive, particularly with two ECB executive board seats due to open next year.
Fed Holds the Line as Inflation Risks Linger
Minutes from the January meeting of the Federal Open Market Committee showed that almost all policymakers favored keeping rates steady at 3.5%–3.75%.
Two officials dissented in favor of a 25bp cut, but the broader committee judged that downside risks to employment had diminished and that inflation progress could stall above the 2% target.
Most participants flagged tariff-related pressures on core goods prices. Several members noted they could support “two-sided” guidance, meaning both rate hikes and cuts remain possible depending on data.
Staff projections suggested slightly higher inflation than previously forecast and stronger economic growth through 2028, supported by consumer spending and wealth gains.
Inflation Timeline Grows Less Certain
January minutes omitted a previously stated expectation that inflation would return to 2% by 2028.
In December, the committee had explicitly referenced that timeline. The new minutes instead described inflation as “slightly higher, on balance,” and suggested tariff effects should fade mid-year.
The removal of the specific date underscores greater uncertainty around the final stretch back to target.
US–Iran Tensions Reignite Geopolitical Risk
According to a report by The Wall Street Journal, President Donald Trump is considering a limited military strike on Iran to pressure Tehran into accepting US nuclear demands.
The initial phase could involve targeted strikes on selected facilities, designed as a calibrated show of force rather than a broad conflict. Officials reportedly said escalation options remain under discussion if Iran refuses to comply.
While Trump has publicly stated a preference for diplomacy, the threat of force appears positioned as leverage in negotiations.
Iran Warns of Retaliation
Iran responded by warning it would not tolerate military aggression and would target regional bases and assets of any “hostile force” if attacked.
Tehran communicated its position to UN Secretary-General António Guterres, saying it does not seek war but is prepared to respond decisively.
The exchange has heightened concerns around oil supply risks and broader regional stability.
Investors Turn Cautious on AI as Gold Becomes the Crowded Trade
The latest global fund manager survey from Bank of America shows investors remain overweight equities and commodities, even as concerns around positioning build.
Key Notes:
- An AI bubble is viewed as the biggest tail risk.
- Long gold is now the most crowded trade.
- Commodity allocations are at their highest level since mid-2022.
- Bearish views on the US dollar are the strongest since 2012.
While earnings optimism remains high, many investors think companies may be overinvesting.
Market Highlights
- WTI crude settled at its highest level since August on rising Iran tensions.
- Gold surged above $5,000 amid geopolitical concerns.
- Walmart reported Q4 EPS of $0.74, slightly above expectations.
- The International Monetary Fund warned of spillover risks from China’s export reliance.
- Warren Buffett’s Berkshire Hathaway reduced its stake in Amazon by 77% in Q4 2025.
Disclaimer
The information in this article is for general information only and does not represent financial or investment advice. Markets are unpredictable, and past performance does not guarantee future results. Before making any financial decisions, please do your own research or consult a licensed financial advisor. We are not responsible for any loss or damage caused by reliance on this content.
