The market continued to monitor US – Chinese trade negotiations and the dollar spent most of the day weaker against the major currencies. It is understood that the US are confident that a settlement on trade with China is likely, but there is going to have to be far reaching structural changes and compliance which will prove to be more challenging.
I suspect that the US and China are starting to realize how dependent their respective economies are on each other.
There continues to be some confusion surrounding Brexit, we saw headlines early in the Asian session that the EU and UK are discussing the possibility of extending Article 50. Like the initial referendum, this will divide the country, whilst PM May denied that this would happen we can’t take it off the table and just reinforces that Brexit talk will persist.
The market continues to wait for some feedback out of Beijing which looks to be going through the evening. The market will continue to the US economic situation and the impact that a long-standing government shut down can have. We also have an address from Donald Trump regarding this issue, coupled with border security.
Today’s Market Trading Levels
- USDCAD BUY 3230 – 1.3190
- EURCAD BUY 5150 – 1.5120
- GBPCAD BUY 6840 – 1.6800