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G20 finance ministers fail to reach an agreement to uphold free trade

Finance ministers and central bank governors of the world's 20 biggest economies at a meeting in Germany during the weekend failed to keep their commitment to endorse free trade in the G-20 communique. Finance ministers warned against competitive devaluations and disorderly FX markets but failed to agree on keeping global trade free and open.

G20 finance ministers and central bankers made only a token reference to trade in their communiqué on Saturday, a clear defeat for host nation Germany and for other countries which rely significantly on exports. The development led to warnings over the weekend on the outlook for trade, a key issue for host nation Germany, which fought the new US government’s attempts to water down past commitments.

“The weak wording on trade is a defeat for the German G20 presidency,” Ifo economist Gabriel Felbermayr said. “This is particularly true in the light of the fact that Germany is one of the world’s strongest export nations and relies on open markets to maintain its prosperity like hardly any other country.”

G20 finance ministers also removed from their statement a pledge to finance the fight against climate change. French Finance Minister Michel Sapin said he regretted that a G20 meeting had failed to reach satisfactory conclusions on climate change and trade.

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July 26 14:00 UTC Released

USNew Home Sales Chg MM*

Actual

0.8 %

Forecast

1.4 %

Previous

2.9 %

July 26 14:00 UTC Released

USNew Home Sales-Units*

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0.610 mln

Forecast

0.615 mln

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0.610 mln

July 26 15:30 UTC 5050m

JPForeign Exchange Flows*

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Forecast

Previous

-2.949 bln

July 26 15:30 UTC 5050m

BRForeign Exchange Flows*

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Forecast

Previous

-2.949 bln

July 26 15:30 UTC 5050m

BRForeign Exchange Flows*

Actual

Forecast

Previous

-2.949 bln

July 26 18:00 UTC 200200m

USFed Funds Target Rate

Actual

Forecast

1.125 %

Previous

1.125 %

July 26 23:00 UTC 500500m

KRNew Home Sales-Units*

Actual

Forecast

2.7 mln

Previous

2.9 mln

July 26 23:00 UTC 500500m

EZGDP Growth QQ*

Actual

Forecast

0.6 %

Previous

1.1 %

July 26 23:00 UTC 500500m

EZGDP Growth YY*

Actual

Forecast

2.7 %

Previous

2.9 %

July 26 23:00 UTC 500500m

KRGDP Growth QQ*

Actual

Forecast

0.6 %

Previous

1.1 %

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