The GBP and the Loonie are in Action with Stats and Geopolitics in Focus

The Canada general election, economic data, and Brexit are all in focus, with early support coming from positive updates from Trump on trade…
Bob Mason
Global financial markets

Earlier in the Day:

It was a quiet day on the economic calendar through the Asian session this morning.

There were no material stats released through the session to provide the majors with direction.

A lack of stats left the markets to track the European and U.S majors from Monday and respond to events in the UK Parliament and chatter on trade.

For the Majors

At the time of writing, the Japanese Yen was down by 0.03% to ¥108.65 against the U.S Dollar, while the Aussie Dollar was up by 0.04% to $0.6871. The Kiwi Dollar was up by 0.36% to $0.6431

Both the Aussie Dollar and Kiwi Dollar have found strong support, driven by monetary policy divergence. The RBA is expected to hold on rates, while the FED is expected to cut rates. The Kiwi Dollar could come undone, however, once the markets begin to look beyond monetary policy decisions through the current month.

The Day Ahead:

For the EUR

It’s a quiet day ahead on the economic calendar. There are no material stats due out of the Eurozone to provide the EUR with direction.

The lack of stats leaves the EUR exposed to Brexit chatter throughout the day.

We’ve seen the EUR and the Pound find strong support on expectations that a no-deal Brexit has been averted. Uncertainty remains, however, with a UK general election the greatest threat to the EUR and the GBP near-term.

At the time of writing, the EUR was up by 0.01% to $1.1151.

For the Pound

It’s a relatively quiet day ahead on the data front. The UK’s CBI Industrial Trend Orders for October are due out later this afternoon.

With stats on the lighter side, the Pound will respond to the CBI number, though direction through the day will continue to be hinged on Brexit.

At the time of writing, the Pound was up by 0.18% to $1.2983.

Across the Pond

It’s a busier day ahead on the economic calendar, with September existing home sales figures due out later today.

The Greenback will respond to the numbers, as the housing sector continues to be considered a barometer for the U.S economy.

Outside of the numbers, geopolitical risk will continue to influence on the day.

The Dollar Spot Index was down 0.03% to 97.297 at the time of writing.

For the Loonie

It’s a busy day on the economic calendar, with August retail sales figures due out later this afternoon.

While the Loonie will continue to be responsive to the election result, retail sales figures will have a material impact today.

Outside of the numbers, the BoC will also release its Business Outlook Survey, which will also influence later today.

How the BoC sees business sentiment will have a bearing on the monetary policy outlook near-term. Strong retail sales would limit any dovish sentiment, however.

The Loonie was up by 0.04% at C$1.3084, against the U.S Dollar, at the time of writing.

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