Sterling boosted by suspected Brexit delay

15 October, 2020

GBP is the strongest performer on the day and now flat on the week versus the mighty Dollar following reports that the UK is ready to extend EU trade negotiations past PM Johnson’s self-imposed deadline of tomorrow. Boris will make a final decision on whether to continue talks after the EU Summit concludes on Friday and after his high-level call today with the EU Commission President.

There appears to still be notable disagreements between both sides, with an element of brinkmanship in the Brussels air as each side seeks to squeeze as many concessions out of the other. But given the prior threat from the UK government to walk away by 15 October if no progress was made, GBP downside against the Euro should remain limited.

Elsewhere, US stocks have opened up in the green with the risk mood a little more constructive this afternoon. DXY has turned back from 93.60 after grinding out a base around 93 yesterday with news that two major drug companies have halted trials of a vaccine within the last couple of days, because of safety concerns.

Canadian dollar steadies near five-week high

CAD has appreciated over 1% against the Dollar this month, but the recent improvement has stalled this week. The broader commodity complex – a big driver for the loonie – is mixed on the day with oil prices modestly lower.

1.31 is the level to beat for the bears and offers decent support after two lows made around there this week. If USD/CAD does break lower, then sub 1.30 and the 1 September low comes into play. Resistance lies above at 1.3175 ahead of the 55-day Moving Average at 1.3225.

Another record high for US stocks?4 Dec, 2020  

Risk assets are looking to end the week, and the year, on a high. US stock futures are edging into the green, indicating the S&P 500 and the Nasdaq...

Technical outlook: Gold tumbles to 4-month low24 Nov, 2020  

After being trapped within a wide range for many weeks, Gold has finally broken below the stubborn $1850 support level. The primary culprits behind Gold's sharp

Calmer seas on Friday the 13th?13 Nov, 2020  

Asian stocks are mostly tracking Thursday's declines on Wall Street, with most US and European equity futures edging lower at the time of writing...

Market rally to pause on election fatigue?6 Nov, 2020  

It has been a momentous week defined by anticipation, tension and drama around the US presidential election. The outcome of this historic election remains on...

US Elections: Bye Bye "Blue Wave"?4 Nov, 2020  

It's still too early to make a decisive call, but markets appear to be paring back hopes for the so-called "blue wave". Expectations for a landslide win for Democrats...

Respect is Within Reach!22 Oct, 2020  

The Pound is the clear winner today after the EU's chief negotiator Barnier said in a speech to the European Parliament this morning that an agreement with the UK...

Technical Outlook: What is Gold waiting for?20 Oct, 2020  

Our commodity spotlight this week shines on Gold which seems to be waiting for a fresh directional catalyst. Since mid-August, it has felt like the same old story for...

Is the best of the recovery behind us?16 Oct, 2020  

Signs that the spread of coronavirus is gathering pace and dwindling US stimulus hopes have dented sentiment today, with major US stock markets opening...

Another Nasdaq pullback in the works?14 Oct, 2020  

Despite Tuesday's dip of just 0.04 percent, the Nasdaq 100's 14-day relative strength index (RSI) is edging closer towards overbought territory once more...