The Loonie loses against the British Pound after the announcement by the leader of the Brexit Party.
Monday 11 November, 2019
Daily Currency UpdateCAD - Canadian DollarWith a holiday in Canada (Remembrance day), the USD/CAD pair is moving sideways, without a significant change.Currencies such as the Aussie dollar, Swedish Krona, and Norwegian Krone are falling against the Euro as protests in Hong Kong are weighing on FX. Equity indexes are declining in North America, Europe, and Asia, kicking off the week with a "risk-off" environment. As usual, currencies such as the Japanese Yen and Swiss Franc, along with gold, are benefiting from this type of market environment. Furthermore, Trump said trade talks with China are moving along "very nicely," but then he brought some uncertainty to the FX markets. Trump said the leaders in Beijing wanted a deal, "…much more than I do;" but, he also described reports as "incorrect" about how much the U.S. was ready to roll back tariffs on China. He added, "If we don't make that right deal, we're not going to make a deal."
Key MoversThe British Pound bounced in overnight trading. The GBP/CAD pair is trading at 1.7030, increasing 0.8 percent, and the GBP/USD pair is trading at 1.2872, representing a 0.78 percent increase after Nigel Farage, leader of the Brexit Party, announced he will abandon his plans to field candidates in all of Great Britain. He is allowing the Conservative party a smoother path to re-election. FX markets participants see a higher likelihood that Prime Minister Boris Johnson wins an absolute majority. The Kiwi dollar is increasing 0.65 percent against the U.S. dollar this morning, despite electronic card retail sales for October in New Zealand contracting by 0.6 percent on a monthly basis, below the market forecasts.
- USD/CAD: 1.3217 - 1.3237 ▲
- EUR/CAD: 1.4550 - 1.4602 ▲
- GBP/CAD: 1.6945 - 1.7079 ▲
- AUD/CAD: 0.9057 - 0.9080 ▼
- NZD/CAD: 0.8396 - 0.8420 ▼