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America’s Roundup: Dollar skids as Brexit optimism lifts pound and euro, Wall Street rises, Gold prices inch down, Oil prices fall 1%-22nd October, 2019

Market Roundup

• Pound maintains most of last week’s gains

• Brexit deal might pass, no-deal Brexit unlikely, analysts say

• Belgium Oct Consumer Confidence -8  , -11 previous

• US 3-Month Bill Auction 1.630%, 1.640% previous

• US 6-Month Bill Auction 1.600%, 1.620% previous                          

Looking Ahead - Economic Data (GMT)

No economic data          

Looking Ahead - Events, Other Releases (GMT)

• 17:00 US FOMC Member Kaplan Speech

Currency Summaries

EUR/USD: The euro dipped against the U.S. dollar on Monday, as contradictory headlines about whether Britain and the European Union were on the verge of agreeing a Brexit deal attracted sellers. In another volatile day of trading , financial markets remained hostage to news as British Prime Minister Boris Johnson and EU negotiators raced against the clock to forge a withdrawal agreement before an EU summit on Thursday. Negotiators were struggling to clinch an 11th-hour deal, raising the chances that Johnson will have to seek an extension of the Oct. 31 deadline for Britain’s exit from the bloc. The euro was down 0.20 percent at $1.1147. Immediate resistance can be seen at 1.1180 (Higher BB), an upside break can trigger rise towards 1.1207(200 DMA).On the downside, immediate support is seen at 1.1139 (100 DMA), a break below could take the pair towards 1.1109 (Ichimoku Cloud Base).

GBP/USD: Sterling rose against dollar on Monday as investors assessed the outlook for Brexit developments this week, after parliament forced Prime Minister Boris Johnson to write to the European Union to ask for a delay to Britain leaving the bloc. The pound remained within a whisker of its recent highs though as most market participants believed a no-deal Brexit was off the table.By 1902 GMT, the pound traded around $1.2965, just off its 5 1/2-month high. Versus the euro, it reached 85.91 pence but stayed off last week’s 5 1/2-month high. Immediate resistance can be seen at 1.3011 (Higher BB), an upside break can trigger rise towards 1.3052 (May 10th high).On the downside, immediate support is seen at 1.2880 (5 DMA), a break below could take the pair towards 1.2705 (9 DMA).

USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Monday, hitting a new three-month high,as millions of Canadians cast their ballots in the country's 43rd general election. Canadians vote on Monday to determine whether Prime Minister Justin Trudeau, who swept into office four years ago as a charismatic figure promising "sunny ways," will remain in power after two major scandals.At   (1908 GMT), the Canadian dollar was trading up 0.3% at 1.3084 to the greenback, or 76.26 U.S. cents. Immediate resistance can be seen at 1.3145 (5 DMA), an upside break can trigger rise towards 1.3216 (11 DMA).On the downside, immediate support is seen at 1.3082 (Lower BB), a break below could take the pair towards 1.3000 (Psychological level).

USD/JPY: The dollar strengthened against the Japanese yen on Monday, as hopes for resolving the U.S.-China trade war pushed investors toward riskier assets. Investors  sentiment was  boosted by comments on Friday by Chinese Vice Premier Liu He that Beijing will collaborate with the United States to address mutual concerns on the trade war. U.S. President Donald Trump had also struck an optimistic tone on Friday, saying he thought a trade deal would be signed before an Asia-Pacific Economic Cooperation meeting in Chile next month. Strong resistance can be seen at 109.07 (Higher BB), an upside break can trigger rise towards 109.34 (Aug 1st high).On the downside, immediate support is seen at 108.33 (9 DMA), a break below could take the pair towards 109.00 (Psychological level).

Equities Recap

European shares broke a three-day run of losses on Monday, as investors stuck to hopes that Britain will avoid a disorderly exit from the European Union, while positive corporate updates and comments on U.S.-China trade talks added to the upbeat mood.

UK's benchmark FTSE 100 closed up by 0.18 percent, Germany's Dax ended up by 0.91 percent, France’s CAC finished the day up by 0.21 percent.

Wall Street kicked off the week on an upbeat note on Monday after the United States and China showed some signs of progress in resolving their trade war, but a fall in Boeing’s shares pressured the blue-chip Dow index.

Dow Jones closed up by 0.18 percent, S&P 500 ended up by 0.65 percent, Nasdaq finished up by 0.87 percent.

Treasuries Recap

 U.S. Treasury yields rose on Monday, in line with gains in stocks, lifted by optimism about potential trade deal between the United States and China as well as a resolution of Britain's protracted negotiations to leave the European Union.

U.S. 10-year note yields rose to 1.772% from 1.75% late on Friday.Yields on 30-year bonds were up at 2.271%, from 2.248% on Wednesday, after earlier hitting a five-week peak of 2.295%.

Commodities

Gold eased on Monday on improved appetite for riskier assets, while investors awaited further clarity from the U.S. Federal Reserve on more possible interest rate cuts this year.

Spot gold was down 0.3% at $1,485.03 per ounce as of 1:52 p.m. EDT (1752 GMT). U.S. gold futures settled down 0.4% at 1,488.10.

Oil prices fell nearly 1% on Monday after comments from a U.S. official stymied hopes that a U.S.-China trade deal would be reached soon, feeding worries that a slowing global economy would reduce demand for oil.

Brent crude   futures fell 50 cents, or 0.8%, to $58.92 a barrel by 1:19 p.m. EDT (1719 GMT). U.S. West Texas Intermediate (WTI) crude   futures fell 45 cents, or 0.8%, to $53.33 a barrel.

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