Friday September 27th, 2019

Democrats have a majority of 53% to launch an impeachment inquiry into U.S. President. The impeachment inquiry so far, appears to have had minimal impact on investor sentiment. The markets primary focus is the upcoming Sino/US trade talks where optimism is growing on comments yesterday from China, that they are willing to buy more US products. Commenting on the Oct 10/11th meeting China said trade talks would yield results if both sides « take more enthusiastic measures » to show goodwill and reduce « pessimistic language » in their trade disputes. A lot of US data out today which should dominate intraday direction.

C$ has been sideline this week, remaining within a relatively tight trading band. Oil prices continue to return weaken, returning to pre-Saudi drone attack levels. Impeachment inquiry may impact USMCA ratification timing, which could put further pressure on C$. US data will provide C$ direction today.

EUR remains under pressure testing fresh 2019 lows as German import prices dropped more than expected. Fears of Germany entering technical recession in Q3 continues to weigh on the currency. Growing trade optimism may help Euro stave off further short term weakness.

GBP remains under pressure on comments from BOE  Michael Saunders saying BOE may cut interest rates as the next move. EU-UK negotiators continue in Brussels. Commentators say they see little chances of achieving any Brexit deal with the UK and if they could, they don’t feel the UK parliament will ratify it. Concern is growing that a « No-Deal » Brexit could be a possibility again, which caused GBP to sell off. Expect more volatility as Brexit negotiations continue. 34 Days to Brexit deadline.