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Forex Today: China stimulus hopes buoy risk ahead of UK GDP, Brexit showdown

Here is what you need to know on Monday, September 9:

– The risk sentiment remains upbeat in the wake of Chinese trade and stimulus hopes after the country’s exports slowed in August. Higher US yields underpin the dollar against the euro, yen and gold, while upbeat Australian lending data lifted the Aussie dollar broadly.  

– Yields are up on hawkish Fed Powell’s stance and amid the rise in US wages and participation rate.  EUR/USD is stuck in a range above the 1.10 handle, with all eyes on the ECB monetary policy meeting this Thursday.

– GBP/USD holds below 1.23 after an eventful weekend on the Brexit issue. Brexit deal bill is set to come into law on Monday. PM Johnson will meet Irish PM Varadkar  in Dublin  to discuss the Irish backstop. UK MPs will vote for snap elections.

– France said it may veto another Brexit extension. Speculations are rife that Johnson may declare a ‘national emergency’ to scrap the Brexit delay bill. According to ITV, Parliament may be prorogued as early as tonight  until 14 October.

– Oil prices rise on optimistic comments by UAE and Saudi Arabia on OPEC+ output cut policy and on the appointment of the new Saudi Energy Minister Prince Abdulaziz bin Salman.

– Cryptocurrencies kick-off a fresh week in the red, with Bitcoin defending 10k level.

Key events to watch

 

 

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