Wednesday October 23rd, 2019

Uncertainty for Brexit again as the UK seeks an extension to the its Oct 31st deadline from the EU. Brexit confusion and the possibility of a UK election saw investors buying safe-haven currencies. GBP and commodity currencies gave up some ground, but optimism for Sino/US trade is helping to calm overall market concerns. Investors will also be focusing on interest rate direction as several European central banks meet in the coming days.

C$ weakened vs the US$ on Brexit and concerns that the Liberal party minority government status may impact its ability to effect its policies. The positive tone has shifted slightly, oil prices eased overnight and the prospect of a continued C$ rally has stalled. As Sino/US trade news remains optimistic, C$ should be able to maintain its current levels.

Euro weakened on the Brexit vote to delay implementation of the Brexit withdrawal deal, but managed to hold above the key 1.1100 level. The one positive note was that for the first time we saw UK Parliament agree on a Brexit withdrawal deal. Focus is on the EU response to the Brexit vote and the central banks decisions on interest rates.

Brexit dominated the markets focus yesterday as UK parliament voted to approve the UK PM Brexit withdraw deal, but voted against the tight timetable for the exit. UK PM told parliament that if they did not accept his timeline he would push for an election before Christmas. The Brexit confusion caused currency market sentiment to shift from optimism to concern as we away EU’s response.