Collinsonfx Daily Market Commentary

A Brexit deal has been reached between the EU and Boris Johnson, which has triggered a massive rally in the GBP, surging towards 1.3000. The deal has been presented to the public and now must pass through an anti-Brexit Parliament. This crushed the initial enthusiasm, as it appears the 'remain' Parliament will reject the deal, in an effort to remain in the EU. PM Johnson has said he would rather 'die in a ditch' than seek a further extension and has offered a deal which looks likely to be rejected, so a 'No Deal Brexit' may come back in to focus?

US markets were positive, despite some weak economic data releases, but strong earnings have supported the rising stock market. US Housing Starts and Building Permits contracted, contradicting the strong NAHB Home Sales number the previous day, but could be considered just monthly fluctuations and not a break in the upward trend. US Industrial and Manufacturing Production both contracted, but this is a hiccup in a sea of positive recent  economic data, while the US economy remains strong. Australian Unemployment fell to 5.2%, releasing pressure on the RBA to cut rates and allowing the AUD to jump to 0.6825, while the NZD spiked to 0.6350.

Brexit and the US/China trade deal remain the dominant driver in the currency and bond markets, globally.