Forex Today: Trade news keep risk-tone lighter, all eyes on Brexit proceedings, Canadian election results
- Trade positive headlines keep Antipodeans firm.
- GBP/USD stays firm ahead of another key day for Brexit.
- Early polls indicate Canadian PM Trudeau to form a minority government.
Forex today carries the previous risk-on forward, mainly backed by trade-positive comments from the US and China while Brexit headlines, being fewer, failed to disappoint the British Pound (GBP) buyers. The US Dollar (USD) stays on the back foot amid a lack of fresh details on the economic calendar and market’s rush for riskier assets while Canadian Dollar (CAD) seesaws as early polls of the Federal Election shows the present Prime Minister (PM) Justin Trudeau to form a minority government.
Dollars of Australia and New Zealand benefit most from the recent trade-positive news wherein the New Zealand Dollar (NZD) takes the lead. The Euro (EUR) looks for further clues before extending the latest upside while the Japanese Yen (JPY), the Swiss Franc (CHF) and Gold have to bear the burden of risk-on. Moving on, Crude prices seem to weigh prospects of increasing supply amid news of hedge funds being increasingly bearish.
Main Topics in Asia
Rainbow alliance of Remain MPs plot to shoot down Boris Johnson’s deal – The Sun
Canada Election: Trudeau posts expected Atlantic losses - Bloomberg
China’s Vice ForeignMin: China will not allow other countries to undermine its security
China’s Vice Foreign Minister: We have achieved some progress in trade talks with the US
Canada's Prime Minister to form minority government - CBC projection
Key Focus Ahead
While the second reading on the Withdrawal Agreement (WA) bill in the United Kingdom’s (UK) Parliament will be in the spotlight, trade/political headlines concerning the United States (US) and China could also gain market attention. Further, final results of Canadian election, Canadian Retail Sales and the Bank of Canada’s (BOC) Business Outlook Survey will join the US Existing Home Sales, Richmond Fed Manufacturing Index and New Zealand trade numbers to decorate the macros.
EUR/USD snaps four-day winning streak, but call options continue to gain value
Monday's inverted hammer candle indicates EUR/UD's rally has run out of steam. Options market continues to add bullish bets, suggesting a continuation of the rally.
GBP/USD: Market turns indecisive near 1.30 ahead of Second Reading of Brexit bill
Monday's spinning top candle indicates the GBP/USD market has turned indecisive. A close below Monday's low of 1.2874 would imply a bearish reversal. The focus today is on the Brexit bill's second reading.
USD/JPY: You could hear a pin drop, but Brexit shenaniguns on the radar
USD/JPY solid on th foundations of a “trade deal with China is coming along great”, according to Trump. Brexit noise will pipe again today as the 2nd reading of the Withdrawal Bill will be a focus.
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
