Currency Market Analysis

Oct 23, 2019 | Currency Market Analysis

Global Themes

Pound drops lower as Brexit delay saps confidence

The British pound drooped back from levels near six-month highs as yet another delay to the UK’s Brexit vote caused markets to turn more nervous.

Overnight, the British parliament refused to fast-track this week’s Brexit debate.

The Johnson government had aimed to rush its new deal agreement through parliament in order to meet the 31 October deadline.

Instead, an extension to the UK’s departure date now looks likely.

While the British parliament did agree to the UK-EU deal, the delay saw global risk sentiment sour with US shares lower.

Sentiment shift?

The shift in sentiment saw the US dollar and Japanese yen both strengthen.

Both currencies have recent weakened.

The Canadian dollar was stronger after prime minister Justin Trudeau was re-elected.

The AUD backed away from key technical resistance levels at the three-month highs.

Manufacturing in focus

European consumer confidence and US house prices will both be watched overnight.

Tomorrow, global manufacturing numbers will provide further detail on the slowing global manufacturing environment.

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