Morning Commentary & Currency Insights – January 15, 2019

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All eyes are on the UK’s Brexit vote in Parliament which is expected to begin around 2PM EST & being hailed as “one of the biggest days in political history for the UK in 300 years.” The vote is expected to fail which is likely to result in a Labour Party backed no-confidence vote Wednesday throwing further uncertainty into the UK’s future. The Pound has traded within a 100 point range in illiquid choppy trade as many stay on the sidelines until the vote has been completed.

USD/CAD has been range bound for the past few days remaining below 1.3300 and supported near 1.3250 as we consolidate after the dramatic 480 point drop last week. Sentiment remains somewhat bearish for the USD overall and we will continue to follow general market themes surrounding Canadian/U.S. interest rate scenarios as well as the easing of global trade war rhetoric and the recovering price of oil. A clear breach of either level mentioned above should open up another 50-80 points either way.

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