Wednesday September 25th, 2019

The primary driver for the markets was the U.S. Presidents comments at the UN and U.S. lawmakers calling for an impeachment inquiry. U.S. Presidents stern comments about China & concerns over Hong Kong has cast doubts over the prospects of China/US reaching a trade agreement. The combination of the UN speech and impeachment inquiry announcement put pressure on the US$, safe-haven currencies strengthened and oil prices eased. Middle-East tensions eased slightly after US President comment that there is a path to peace. No key data out today, but two Fed board members are speaking and their comments may have some market impact.

C$ weakened slightly vs US$ as optimism dampened for the Sino-US trade talks. Oil prices are also starting to impact the loonie as they fell for a second day. Oil weakness is a combination of the prospects of US trade talks and Saudi oil supply coming back on line. 1.3310 remains key resistance point, intraday expect C$ to remain within its current range.

Falling trade optimism and growing concerns that the US is considering tariffs against the EU amid the Airbus dispute impacted Eur. European economies remain vulnerable too recession, reduced trade optimism will dampen future economic growth and negatively impact Eur.

UK PM back in the UK and is facing growing demands for his resignation after a humiliating Supreme Court ruling that he had unlawfully suspended parliament. Parliament will sit again on Wednesday, at this stage it’s not clear how the Brexit deadlock will be broken. Despite the political uncertainty GBP has remained quite resilient – 36 days to Brexit deadline.