MARKET DEVELOPMENT – Canadian Dollar Drops, GBP/USD Choppy, NZD/USD Underperforms
DailyFX 2019 FX Trading Forecasts
GBP: A typical choppy and volatile session so far for the Pound. An initial spike on reports from the RTE that the DUP were ready to support Boris Johnson having resolved key stumbling blocks, had been quickly dismissed by DUP Leader Foster. The fact remains the same, that Boris Johnson will need DUP support to increase the likelihood of a potential deal being passed through parliament.
CAD: Canadian inflation saw a larger than expected monthly drop, resulting in the yearly rate dropping to 1.9% (Exp. 2.1%). However, while this had kept the Canadian Dollar on the defensive, the BoC’s core measure in fact rose to 2.06% (1.96%), as such, this data is unlikely to provide a cause of concern for the central bank.
NZD: Overnight, the New Zealand Dollar saw a brief jump on the back of the Q3 CPI data, in which both the headline and quarterly rate rose above expectations and more importantly, above the RBNZ’s forecast. That said, this is unlikely to the alter the monetary policy path for the central bank with money markets fully pricing in another 25bps rate cut at the November meeting.
Source: DailyFX, Refinitiv
WHAT’S DRIVING MARKETS TODAY
- “EUR/USD Price: Struggles Continue, Sitting on 50-Day Moving Average” by Nick Cawley, Market Analyst
- “FTSE 100 vs FTSE 250: Brexit Progress Key to Outperformance” by Justin McQueen, Market Analyst
- “DAX 30 & CAC 40 Technical Outlook: Challenging Year Highs” by Paul Robinson, Currency Strategist
- “Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor
--- Written by Justin McQueen, Market Analyst
To contact Justin, email him at Justin.mcqueen@ig.com
Follow Justin on Twitter @JMcQueenFX
