Friday October 11th, 2019

The US President commented on the Sino/US trade negotiations saying that progress was “very very good”. Commodity currencies & CNY responded positively on the news and safe-haven currencies started to sell off.  The Michigan Consumer Sentiment report and trade talks announcements will be primary focus for markets today.

C$ firmed on the US/Sino trade talks progress and also on the strengthening of oil prices. Oil prices firmed after reports that an Iranian oil tanker had been struck by a missile near Saudi Arabia. Canadian employment data is out this morning, with expectations of +10k new jobs in September. Some analysts are expecting the employment number may exceed expectations, in which case we could see C$ rally to low 1.32’s.

EUR continues to hold above the 1.10 level supported primarily by the Sino/US trade optimism. Ongoing concern for the strength of the Germany economy and Brexit negotiations continue to impact Euro’s ability to strengthen. Intraday the US consumer sentiment report and possible US/Sino trade comments will impact Euro’s direction.

GBP rallied 2% to a 3 month high after the chief Brexit negotiators said they have found a “pathway” to a possible Brexit deal. Brexit negotiations continue ahead of the EU summit next week and the pending Oct 31st deadline. The potential for further volatility remains high for GBP as negotiation continue. 20 Days to Brexit deadline.