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.

Anil Panchal FXStreet

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.

AUD/USD hangs near three-week low, below 0.6950 as traders await US NFP report

AUD/USD hits a three-week low during the Asian session on Friday as the RBA’s dovish shift and a rout in equity markets weigh on the risk-sensitive Aussie. However, the recent slump in US bond yields to a two-month low keeps US Dollar bulls on the back foot and limits losses for the currency pair as traders look to the US NFP report for a fresh impetus.

USD/JPY bounces off three-week low; keeps the red near 157.65 as focus remains on US NFP

USD/JPY bounces off the weekly low set during the Asian session, as bears turn cautious ahead of the US NFP report due later this Friday. The upside seems limited as the recent slump in US bond yields and hopes of Iran war de-escalation undermine the US Dollar. Moreover, a hawkish BoJ and intervention risks support the Japanese Yen, capping the pair.

Gold loses the grip; $4,000 comes next on the downside

Gold sets aside two daily advances in a row on Friday, opening the door to a potential test of the key $4,000 mark per troy ounce. The precious metal’s retracement follows a decent improvement in the sentiment surrounding the US Dollar, solid NFP data and higher US Treasury yields across the board.

Democrats win House and Senate in US midterms: Why isn’t all bad news for crypto

The biggest story this week was Tuesday’s US midterm elections, which saw Democrats win control of both the House and the Senate in a clear blue wave. This political shift in the US has triggered sharp price swings across the cryptocurrency market.

Week ahead – Inflation and geopolitics in focus as US political landscape shifts

Post-midterm election euphoria fizzles out as risk aversion prevails. US CPI, PPI and Fedspeak on the radar as Fed hike bets remain supported. Oil retreat pauses on mixed hopes about the ongoing conflicts.

US Dollar breaks below 101.50 as Democrats sweep Congress

The US Dollar (USD) comes under heavy selling pressure on Wednesday, with the US Dollar Index (DXY) falling around 0.5% to trade near 101.35 after sliding below the 101.50 level. The Greenback retreats to its lowest level in four weeks as investors reassess the political and economic outlook following the Democratic Party's sweeping victory in the United States (US) midterm elections.