The US$ weakened vs most currencies as investor selling grew following weak US data last week and fading trade talk expectations. Last weeks weak US data has increased concern that the US economy is slowing down, which increases the potential that the fed could ease rates further. The Sino/US trade talks resume on Thursday, but the expectation is that a comprehensive agreement is out of reach. US President commented that he thought a quick deal was unlikely capping market gains. The focus shifts to Fed Chair speech later today and US PPI data out this morning for intraday direction.
Cad continues within its tight trading band, remaining sidelined and focused on US/Sino trade talks. Oil prices firmed slightly as unrest in Iraq and Ecuador raised some supply concerns.
Cad continues within its tight trading band, remaining sidelined and focused on US/Sino trade talks. Oil prices firmed slightly as unrest in Iraq and Ecuador raised some supply concerns. Negative Sino/US trade expectations could see a retest of mid 1.33 levels.
Despite better than expect German data Euro failed to rally on the positive news. US/Sino trade uncertainty, US tariffs, Brexit and domestic economic concerns continue to negatively impact Euro.
GBP weakened to a 3 week low vs Eur as speculation grows that Brexit talks appear to be collapsing. The Brexit negotiations continue in Brussels and expectations that an agreement can be made is low. If UK parliament does not agree on Brexit by October 19th, the government is obliged to ask for delay to Brexit. 23 days to Brexit deadline.