GBP/USD Surges on Irish Backstop Hopes - US Market Open
MARKET DEVELOPMENT – GBP/USD Surges on Irish Backstop Hopes
GBP: Sterling has been the notable mover, gaining over 0.9% against the greenback as Brexit optimisim underpins with the pair seeing its largest weekly gain since May. A report in the Time newspaper snoted that the DUP would accept Northern Ireland abiding by some EU rules after Brexit as part of a new deal in order to replace the Irish backstop. That said, with the threat of an imminent no-deal continuing to ease, the short-covering has kept the Pound elevated. However, unlike the DUP, the rhetoric stemming from the Irish PM has been less optimistic that a deal can be reached. Elsewhere, eyes will be on the outcome following UK PM Johnson’s and EU’s Juncker meeting on Monday. On the option front, $620mln worth of expiries at 1.2450 has largely kept a lid on further GBP/USD.
CAD: The Canadian Dollar is among the underperforming currencies across the G10 complex with USDCAD back above 1.32. Uncertainty regarding the upcoming Canadian election on October 21st is likely to keep gains limited for the Loonie, while softer oil prices have also pressured the currency. As it stands, the Canadian Dollar is on course for its worst week against the greenback since July. That said, with little left on the economic scehdule, risk sentiment is likely to dictate price action throughout the rest of the session.
WHAT’S DRIVING MARKETS TODAY
- “US Dollar Uptrend Under Pressure Ahead of Sales Data and FOMC Rate Decision’” by Nick Cawley, Market Analyst
- “Dow Jones, S&P 500, NDX Technical Outlook as Record Highs Near” by Paul Robinson, Currency Strategist
- “Most Volatile Currencies Next Week - US Dollar, GBP/USD” by Justin McQueen, Market Analyst
- “Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor
--- Written by Justin McQueen, Market Analyst
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