Monday October 21st, 2019

The positive sentiment for Brexit and trade talks has seen investors continue to unwind safe-haven currencies. The US$ remains under-pressure vs Euro & the commodity currencies, all of which are testing multi-month highs. Trade talk progress could be impacted on news China is seeking $2.4 billion in sanctions against US for non-compliance of a WTO ruling. Expect markets to remain focused on UK PM and his ability to get a vote on his Brexit proposal.

The C$ strengthened to an almost 3 month high despite weaker oil and uncertainty in tonights Canadian general election. The Canadian election results will be watched closely tonight with the outcome being too close to call in the polls. Positive Brexit & trade talk tones could see C$ extend its rally vs US$ to 1.3010 last seen in July.

Euro continues to hold onto its gains boosted primarily on Brexit optimism and after China said concrete progress with the US on trade talks. Expect Euro to remain news dependent focusing on the outcome of Brexit for short term direction.

GBP hit a five-month high vs US$, extending its gains as the chances for parliament to approve the Brexit deal grows. Parliament didn’t vote on the Brexit proposal Saturday, but rather voted to get an extension to Brexit which the UK PM complied with. Market confidence has grown as the prospect of a No-Deal is reducing. We continue to watch as the political saga unfolds as parliament strives to agree on a Brexit deal.