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By xemarketanalysis October 10, 2018 1:32 pm
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    XE Market Analysis: Hopes of a Brexit Deal Peak Up the Pound and the Euro


    • The Pound rose today as optimism grew over a Brexit deal being reached
    • The Euro also gained strength as fears over Italy's budget deficit were trumped by encouraging Brexit headlines
    • The Canadian Dollar edged lower the USD today as oil prices fell and US Treasury yields hovered around multi-year highs.


    The Pound reached a 3 1/2 month high against the Euro today, as Michel Barnier signalled that progress had been made on a withdrawal agreement


    The US Dollar is widely mixed today on a slow day for US data financial data. The main story today has been a Market Sell Off which has somewhat diminished the strength of the Greenback. 


    The Pound is the top performer today as there's fresh hope that a deal could be reached in the upcoming EU Council meetings. Michel Barnier, the EU Brexit Negotiator stated that Brexit deal terms are 80-85 % agreeable to all parties at the table. This news sent the currency sharply higher across the board.


    The Euro has stopped its losing streak as fears over Italy and their budget took a backseat today. Positive Brexit news sent the currency higher as this outweighed the current ongoing fears over the Italian economy.


    The Loonie is slightly weaker as oil prices fell around 0.6% today. The IMF cut its world gross domestic product forecasts for the first time in two years and fears over this impacted the currency as the Canadian economy could suffer if global growth slows down.  


    The Australian Dollar is generally unchanged today as there is a gradual move away from a 32-month low in the currency relative to the US Dollar. It is a relatively quiet start to the week as we await Governor Ellis' speech later this week.


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