Tuesday September 24th, 2019

US$ remains relatively stable vs major currencies as Sino/US trade optimism grew. China granted several Chinese companies tariff waivers for US Soybean imports. The waivers have set a positive tone ahead of high-level trade talks scheduled in 2 weeks’ time. UK supreme court rules that UK PM guilty of suspending the parliament unlawfully. President Trump is speaking at the UN today and is expected to make his case for keeping pressure on Iran.

Oil prices eased with weak manufacturing data from Europe and expectations Saudi Arabia will restore oil output faster than anticipated. The Canadian dollar held below key 1.3310 resistance after domestic wholesale trade data suggests that the BOC will leave interest rates unchanged at the next meeting. Middle-East geopolitical risk remains, with investors listening to US Presidents speech at the UN closely today.

EUR failed to rally upbeat German IFO Business Climate survey, as underlying sentiment remains negative with German recession fears. Positive tone on trade talk negotiations and the reduced chances of a no-deal Brexit should provide some support to Euro.

GBP remained firm after the UK Supreme Court rules prorogation was ‘unlawful’, declaring PM Johnson as guilty of suspending the parliament unlawfully.The Supreme courts decision is seen as win for the opposition and suggests it will be harder for UK PM to push a no-deal Brexit. 37 days to Brexit deadline.