Forex news from the European morning session - 22 October 2019
Headlines:
- UK MP Nick Boles tables amendment to stop no-deal Brexit "trapdoor"
- UK October CBI trends total orders -37 vs -30 expected
- Barnier: Trade deal with the UK will take two, three or maybe more years
- EU's Tusk: A no-deal Brexit will never be our decision
- EU's Tusk: Still consulting leaders on Brexit extension
- What to look out for in Brexit this week?
Markets:
- NZD leads, CHF lags on the day
- European equities mixed; E-minis flat
- US 10-year yields down 2.1 bps to 1.778%
- Gold up 0.2% to $1,487.40
- WTI up 0.5% to $53.57
- Bitcoin up 0.5% to $8,246
Another European morning, another session dominated by Brexit headlines.
It's all about the countdown to the second reading vote on Boris Johnson's WAB and the general feeling is that he is going to get the numbers on his side today.
However, the programme motion is representing a separate issue now as lawmakers may not want to rush the Brexit process. As such, that may yet throw a wrench in Johnson's plans to get things done by 31 October.
The pound held steadier at the start of the session with cable around 1.2980 before falling to 1.2960 and then further to 1.2922 as the dollar strengthened slightly.
The dollar strength came alongside a move higher in the yen as risk trades gave up gains and bond yields slipped before paring some of the move as the session progressed.
Notably, AUD/USD retreated from 0.6880 to 0.6860 while NZD/USD eased from 0.6435 to 0.6415 amid the more tepid risk mood.
Canadian elections barely had any effect on the loonie as Trudeau's Liberals are seen retaining power but with a governing minority. USD/CAD held steady around 1.3080-95 for the most part during the session.
Looking ahead, the major focus remains on the Brexit vote later today - which is expected at 1800 GMT before we get to the programme motion setting out the Brexit timetable.
As things stand, Johnson looks set to get the numbers for the main vote - a pound positive - but if he loses the vote on the timetable, it will make things more complicated.
