US FX Handover: Brexit Busts, China Digs In
Matt Weller, CFA, CMT May 21, 2019 3:27 PM
- PM May proposed a new Brexit deal that offered Parliament a choice on customs arrangements and a vote on a second referendum…if they pass her withdrawal bill first. GBP/USD is on track to close lower on the day, despite a 100-pip intraday rally.
- Chinese state media maintained its hardline approach toward trade negotiations with the US, stating “Make no mistake, China is not bluffing” and noting that “triumph will be in China’s hands.” That said, yesterday’s exemptions to some Huawei suppliers suggests that the US may be willing to come back to the negotiating table.
- In the only scheduled macroeconomic data release of the day, US existing home sales came in weaker than expected at 5.19M annualized.
- The loonie was the strongest major currency today, while yen brought up the rear.
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