Forex Today: Brexit keeps investors in wait-and-see mode
|Here is what you need to know Tuesday, October 22nd:
- It was a dull start to the week, with market players digesting Brexit-related news. The dollar enjoyed short-lived demand at the beginning of the day but was unable to sustain its modest gains, falling to fresh monthly lows against European and commodity-linked currencies.
- Brexit: John Bercow, Speaker of the House of Commons, ruled that he won’t allow MPs to have a “meaningful vote” on Boris Johnson’s Brexit deal Monday, as the circumstances haven’t changed. Later, House of Commons leader Rees-Mogg announced that a second reading of the Withdrawal Agreement will take place Tuesday. In the meantime, the EU27 is yet to decide on Johnson’s extension letter.
- China-US trade: US President Trump. Mid-US afternoon stated that the trade deal with China was “coming along great,” adding that he hopes to sign a deal with China at the Chile APEC summit, scheduled for next November. Earlier in the day, Trump’s advisor Kudlow said that if phase one of China talks goes well, December tariffs could be taken off. The positive news triggered little reaction across the FX board.
- Commodity-linked currencies were the best performers, in spite of weaker gold and oil prices.
- Cryptocurrencies edged marginally higher but traded dully as most financial assets.
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