Market Brief: Brexit votes and Canadian elections in focus

  • Market snapshot: At 13:00 BST, NZD and GBP were among the strongest and JPY and USD the weakest. Stocks were on the rise, and commodities mixed. It was risk ON ahead of the open on Wall Street.
  • Brexit update: The UK parliament triggered the Letwin amendment on Saturday, which effectively meant the “meaningful vote” was delayed. However, reports that the government may have the required number of votes to secure a deal saw the GBP quickly regain its poise, causing the GBP/USD exchange rate to break above the 1.30 handle this morning. The UK government is still seeking a meaningful vote later today but the decision whether to allow it is in the hands of Commons speaker John Bercow.
  • Canada elections 2019 is underway today and it be a hotly-contested race. Incumbent Prime Minister Justin Trudeau is desperately seeking a second term for his Liberal Party but the latest polls from CBC news shows his party is holding an average of 32% of support, only just ahead of the Conservative Party which is trailing at 31.6%. HERE is what we think the result of the elections mean for the Loonie.
  • Commodities: Silver was attempting to break higher, but gold remained range-bound as investors weighed the impact of falling dollar against a still-buoyant stock market. Will silver follow the lead of copper and palladium and rise, or will gold hold it back? We are turning bullish on the white metal for THESE four reasons. Meanwhile, crude oil extended its losses this morning after Friday’s breakout attempt failed as investors worried about rising US supplies. However, oil prices were rebounding off their worst levels at the time of writing. The upcoming earnings will provide clues about the level of demand for the black stuff.
  • Stocks: were marginally highs in Europe with the DAX outperforming with a gain of 0.8% while the FTSE was just about in the positive territory, weighed down by the appreciating pound amid Brexit optimism. Sentiment remains supported – for now – amid growing optimism over resolutions for Brexit and US-China trade deal. On a micro level, US earnings will be in focus this week, although there aren’t any big household names reporting today.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT