China’s announcement of tariff exemptions on 16 types of US products has been viewed as a positive sign of easing trade tensions. China’s Global Times comments that China would introduce “Important Measures” targeted to ease the impact on the economy from the trade dispute. Growing optimism saw safe-haven currency selling, but the majority of currencies remain sidelined, waiting for the ECB & US CPI data.
C$ continues to hold close to its 6 week highs, but has been unable to extend its gains and break the key 1.3105 level. Oil prices remain firm with falling inventories and OPEC comments. Campaigning begins ahead of the Oct 21st national election. Expect C$ to remain with in its current range ahead of the ECB & US CPI tomorrow.
Euro remains at the low end of its current range, close to 2 year lows. The currency remains sidelined as it awaits tomorrows European Central Bank meeting. The ECB is expected to announce monetary easing, but to what extent they will ease remains uncertain. 1.0960 remains a key support.
GBP vs US$ remains steady near its 2 month highs after lawmakers ensured a “no-deal” Brexit was taken off the table. The focus will shift to see if the UK PM and his ability to strike a deal with EU prior to the Oct 31st deadline. A positive note for the PM, recent polling survey showed the conservative party had a significant lead over the opposition labour party. 50 days to the Brexit deadline.