Monday September 23rd, 2019

US$ starts the week stronger vs major currencies after disappointing German data and mixed comments from last weeks trade talks. US-Sino trade talks, both sides said that the negotiations are « productive » and « constructive. »  Chances of an interim deal seem slim as President Trump stated that he prefers the « big deal » rather than a limited one. Saudi Arabia has restored about 75% of its crude output and expects to return to full volumes by early next week. Middle-East tensions, UK Supreme court decision today and ECB Draghi speech could impact currencies today.

C$ failed to capitalize on stronger oil prices as investor appetite the currency remains low. We are opening close to 1.3300 level, as investors focused on weaker retail sales numbers Friday and mixed comments from the Sino/US trade talks.

Weak German Manufacturing PMI came out weaker than expected seeing private sector activity shrinking for the first time in 6-1/2 years. Fears of a recession are mounting and EUR weakened on the news. ECB’s Draghi speaks later, this will be his last appearance in the chamber before he steps down in November.

Sterling weakened in early morning trading as investors awaited the British Supreme Court decision over proroguing parliament. Optimism remains positive from UK PM ahead of meetings with EU Leaders in NYC today. GBP weakened this morning, but buyers continue to look for positive news to buy. 38 days to Brexit deadline.