Pound gains on Brexit headlines; dollar weaker
The UK pound is the big story this morning as the currency leads G-10 gainers on Brexit headlines. PM Johnson is expected to continue talks past the previous 10/15 deadline. The dollar slides versus all major peers amid tentative risk on markets. Earnings season continues today and markets will continue to focus on bank earnings.
"Fortune befriends the bold."
October 14, 2020
EUR/USD 1.1762 GBP/USD 1.3030 USD/CAD 1.3133 AUD/USD 0.7182 USD/JPY 105.22 USD/CNH 6.7190 USD/ILS 3.3769 USD/MXN 21.2759 USD/CHF 0.9137 USD/INR 73.2988
The dollar is lower versus all peers for the first day in three as treasury yields drop and traders interpret bank earnings. Producer prices came in higher than expected rising 0.4% in September versus an expected 0.2% month over month rise. Stimulus talks appear to have stalled as one side blames the other for the gridlock.GBP
The pound leads G-10 gainers rising on news that PM Johnson won’t walk on Brexit negotiations after the October 15 deadline. Reports allude to the end of the EU summit on Friday as a next decision point. There has been little optimism about an agreement in the coming days.EUR
After dropping sharply yesterday, the euro ticked up slightly on dollar weakness and as bond yields slide on optimism on further stimulus and Brexit headlines.CAD
The Canadian dollar held strong against the weaker US dollar. No Canadian data is due out today, but Bank of Canada’s Tim Lane will speak on a panel this morning.ASIA/PACIFIC
The yen is down slightly eyeing support ahead of a 105 psychological level. PBOC commented on the stronger yuan saying that the yuan’s appreciation reflects a strong growth environment in China.
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