FX Trader, Loonieviews.net
Sterling rocked higher when Bloomberg reported a Brexit deal might be in the works, and GBPUSD rallied from 1.2942 to 1.3051 in a heartbeat. European Union Chief negotiator Michel Barnier apparently told an audience in Slovenia that a deal could be reached within eight weeks. That news follows an earlier story in the Financial Times that suggested that EU officials would be giving Barnier instructions to close the Brexit deal. However, the Irish border issue hasn’t been resolved, which helped to cap the GBPUSD rally.
Trade is a popular theme today. President Trump hasn’t backed off his threat made on Friday that China tariffs were ready to go. China said they would retaliate. Wall Street seems a tad bored with that narrative as evidenced by this morning’s gains in the DJIA, S&P500 and Nasdaq which are modestly higher. Apple (AAPL) is down 1.5% thanks to Trump’s weekend comments that if the company wanted to avoid tariffs, it should move production stateside.
USDCAD is rangebound but with a bid. The US/Canada trade talks took on more urgency over the weekend. Three senior US administration officials led by White House Economic Council Director Larry Kudlow were demanding an end to Canada’s dairy supply management program. Previously, Prime Minister Trudeau promised not to sign a Nafta deal if it involved having to give up the programme. Making matter’s worse, President Trump promised “ruination” for Canada and 25% tariffs on cars if a Nafta deal wasn’t completed.
The US dollar retreated since the open, fueled by gains in GBPUSD and the modestly positive tone to riskier assets that gains on Wall Street imply. A lack of actionable US economic data and profit taking following Friday’s nonfarm payrolls-fueled rally is helping.
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Commodity Strategy
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Chief Investment Strategist
Quarterly Outlook
Head of Fixed Income Strategy
Quarterly Outlook
Head of Commodity Strategy
Disclaimer
The Saxo Bank Group entities each provide execution-only service and access to Analysis permitting a person to view and/or use content available on or via the website. This content is not intended to and does not change or expand on the execution-only service. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.
Please read our disclaimers:
- Notification on Non-Independent Investment Research (https://www.home.saxo/legal/niird/notification)
- Full disclaimer (https://www.home.saxo/en-gb/legal/disclaimer/saxo-disclaimer)