GBP/USD Drops as Government Threatens Election, Canadian Dollar Unfazed by Election - US Market Open
MARKET DEVELOPMENT – Brexit Latest: GBP/USD Drops as Government Threatens Elections if Brexit is Delayed
Sterling fell to session lows after the government threatened to pull the bill if MPs were to vote down the programme motion tonight as this would lead to fears that there is not enough time to get Brexit done by October 31st. Consequently, in the event that the government pulls the Withdrawal Agreement Bill the government would reportedly look to push for a snap election before Christmas, providing yet another wave of political uncertainty.
Canadian Dollar saw a relatively muted reaction to the Canadian election which saw a minority government for the Liberal Party and Prime Minister Trudeau (largely expected). That said, with focus now shifting towards Canadian data, the softer than expected retail sales figures saw USD/CAD reclaim 1.31, eyes now firmly fixed on the Bank of Canada business survey.
Source: DailyFX, Refinitiv
Economic Calendar (22/10/19)
WHAT’S DRIVING MARKETS TODAY
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- “Canadian Dollar Price: USD/CAD Falls to Multi- Month Low Ahead of CAD Data” by Mahmoud Alkudsi, Market Analyst
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