In forex today, Asia markets were stifled by a wipe of holiday markets across Australia, China, and Hong Kong, leaving early markets with thin volumes as traders await the rest of the globe to wake up to Monday headlines.
Next step of NAFTA completed as agreement gets a facelift (in name only)
The big mover for the Asian market session was the USD/CAD, which gapped open at the market’s outset after trade talks between the US and Canada continued around the clock over the weekend, and a last-minute framework of an agreement has been reached by both countries, and US President Donald Trump is set to sign the new trilateral trade agreement, now called USMCA, by the end of November.
EUR/USD: On the defensive after bearish outside week reversal, focus on Italy news
Italy is dominating EU-centric headlines for the time being after the Italian government decided to snub EU deficit limits, and traders will be keeping an eye out for continued shakeout from Italian politicians, with the early part of the week set with a hectic but minimally-impactful economic calendar.
GBP/USD holding above 1.30, for now
Brexit headlines continued to cross the wires over the weekend and into the new trading week, but little momentum is seen on trade talks between the UK’s Prime Minister Theresa May and European Union leaders in Brussels, while hard-line Brexiteers in PM May’s own Conservative party continue to threaten to vote down any trade plan the PM manages to achieve with stoic EU leaders giving little quarter in talks, and uncertainty that the UK may face a hard Brexit afterall are back on the rise.
Key notes from the Asia session
Breaking News: Trump has approved framework deal with Canada to update NAFTA – Source familiar with decision
ECB’s Coeure: policy normalization will be gradual
USD/CAD Technical Analysis: Off 4.5-month low, the pair is respecting oversold 1H RSI
Share
