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By xemarketanalysis January 10, 2019 2:10 pm
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    XE Market Analysis: Brexit Back in the Headlines as Labour Party May Demand Election

    OVERVIEW

    •  Labour party states it will demand an election if PM May's vote fails on Brexit separation logistics
    • The US Dollar partially rebounds from lows as it pares some bearish bets
    • Canadian Dollar strength fades as optimism over a trade deal subsides

    HIGHLIGHT

    The Sterling to Euro rate lurks around the 1.1100 level and touched a week's low of 1.1032 in early trading today. It was feared that a general election could be demanded by parliament with the House of Commons losing confidence in PM May's ability to lead.  

    US DOLLAR

    The US Dollar has rebounded somewhat from the lows seen earlier this week as the US-China trade war negotiations hit a bump in the road. Traders now await the outcome of these negotiations, with any further tariffs expected to strengthen the Greenback.

    BRITISH POUND

    The Pound weakened today as Brexit debates intensified in the House of Commons. The Labour Party is now demanding a general election if PM May's meaningful vote is defeated on Tuesday. After a bill was passed in Parliament yesterday, a Plan B must be presented within days if the vote goes against the Prime Minister. 

    EURO

    The Euro had a somewhat muted day on this quiet day for data announcements. The big break of 1.1500 against the US Dollar looks in jeopardy if the US-China trade talks break down.

    CANADIAN DOLLAR

    The Canadian Dollar weakened on Thursday, as investor optimism for a trade deal between the US and China faded, putting pressure on stocks and oil prices.

    The start of the trading day saw the Canadian dollar trading 0.2% lower against its US counterpart, and it closed at 1.32399.

    AUSTRALIAN DOLLAR

    The Australian Dollar gave up some of its recent gains against the US Dollar as US/China trade talks ended without any clarity on a when a deal would be struck, if at all. The Aussie Dollar dropped back to 0.7158 against the US Dollar.

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