Dollar advances as Brexit vote outcome spooks
Kathryn Garvey " | October 23, 2019
October 23, 2019
EUR/USD 1.1122 GBP/USD 1.2893 USD/CAD 1.3097 AUD/USD 0.6850 USD/JPY 108.57 USD/CNH 7.0662 USD/ILS 3.5324 USD/MXN 19.1416 USD/CHF 0.9898 USD/INR 70.9037
The dollar is higher for a second day as haven currencies advance following an easing in US equity futures and renewed Brexit uncertainty. August FHFA house price index for August came in at 0.2% versus 0.3% and left the dollar largely unchanged.GBP
Yesterday, Boris Johnson won the vote on his Brexit bill, but lost the one which would accelerate implementation to meet an October 31 departure from the EU. Reports now suggest that the EU is likely to grant an extension until January 31, which would give the PM an opportunity to call a general election to create a working majority in Parliament. The pound dropped slightly, but optimism surrounding avoidance of a No-Deal Brexit stopped the downward movement.EUR
The euro is under pressure driven by a stronger dollar and spillover Brexit uncertainty. Markets look ahead to tomorrow’s ECB meeting and the Eurozone PMI release.CAD
The Canadian dollar remains steady near a three-month high after wholesale trade numbers unexpectedly dropped for the first time this year. The Bank of Canada is set to meet next week and release an interest rate decision on October 30.ASIA/PACIFIC
The Chinese yuan weakened slightly as another Brexit delay drove investors into haven assets which sent the dollar higher versus the yuan. Hopes for a preliminary US-China trade deal in the near term limited downward movement.
The Japanese yen was slightly stronger early in the session, but as the dollar strengthened, it reversed gains and eased by as much as 0.2%.
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