Earlier in the Day:
It was a quiet start to the week on the economic calendar through the Asian session this morning.
There were no material stats to provide the majors with direction on the day. A lack of stats left the majors in the hands of geopolitics and the outlook for the week ahead.
On the geopolitical front, news of the EU planning to approve a flexy 3-month Brexit extension failed to influence, with positive updates from the U.S on trade also providing little support early on.
With the FED interest rate decision and a mass of economic data and corporate earnings to digest in the week ahead, it was a cautious start.
For the Majors
The Day Ahead:
For the EUR
It’s a quiet day ahead on the economic calendar, with no material stats due out of the Eurozone to provide direction later today.
On the monetary policy front, outgoing ECB President Draghi is due to speak late in the day. Following last week’s ECB press conference, however, there shouldn’t be too many surprises.
With little for the markets to consider on the day, market sentiment towards trade and Brexit chatter will continue to influence.
At the time of writing, the EUR was up by 0.02% to $1.1082.
For the Pound
It’s also a quiet day ahead on the data front. There are no material stats due out of the UK to provide the Pound with direction.
A lack of stats leaves the Pound in the hands of the EU and the UK Parliament through the latter part of the day.
News of the EU planning to approve a flexible 3-month extension until 31st January failed to support the Pound early on. The extension will bring uncertainty over what lies ahead. Boris Johnson is targeting a general election that could ultimately deliver Brexit. For the opposition party, Corbyn has hopes of a 2nd referendum, which may end with Britain remaining within the EU.
At the time of writing, the Pound was down by 0.06% to $1.2819.
Across the Pond
It’s a relatively quiet day ahead on the economic calendar. September goods trade figures are due out of the U.S later today.
Barring dire numbers, however, the stats will unlikely have an impact on the Dollar.
It’s all about the FED in the early part of the week, with the markets expecting a 25 basis point rate cut.
On the geopolitical front, however, the Dollar could come under fire should further progress be made on the impeachment front. There’s also Brexit and any further updates on trade talks to also consider throughout the day.
The Dollar Spot Index was up 0.03% to 97.863 at the time of writing.
For the Loonie
It’s a quiet day on the economic calendar. There are no material stats due out of Canada to provide the Loonie with direction.
The lack of stats will leave the Loonie in the hands of market risk appetite throughout the day.
The Loonie was down by 0.11% to C$1.3073, against the U.S Dollar, at the time of writing. A fall in oil prices early on weighed ahead of Wednesday’s BoC monetary policy decision.
This article was originally posted on FX Empire
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