Market themes of the Day: Brexit deadline pushed back, USD finds its feet, US GDP eyed

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  • Brexit: Both the EU and the UK see the October deadline as unlikely. November is now seen as the deadline to conclude talks. Any delay increases the likelihood of a no-deal Brexit.
  • The US and Canada make progress on NAFTA talks amid reports of Canadian concessions on dairy products. An upbeat market mood weighed on the USD, but the greenback stabilized and continues recovering.
  • The second release of US GDP is awaited at 12:30 GMT. A small downgrade is expected. See the preview, and how to trade the event.
  • The US still intends to slap tariffs on $200 billion of Chinese goods as Trump says “it is not the time to talk now.”

US:

  • US CB Consumer Confidence hit the highest since November 2000, helped the greenback stabilize.
  • The Case Shiller HPI missed expectations, adding to concerns about the housing sector.
  • Pending Home Sales are due at 14:00 GMT.
  • Richard Clarida has been confirmed as the next Vice Chair of the Federal Reserve.

UK

  • UK press: Chancellor  Phillip Hammond and PM Theresa May are reportedly at loggerheads on the budget.

Euro-zone

  • Italy: There are conflicting reports about the country’s intent to breach EU budget deficit rules.
  • Reports suggest Italy wants the ECB to continue buying bonds.
  • French Q2 GDP is expected to be confirmed at 0.2% q/q.

Australia

  • Australia’s Private Capital Expenditure and Building Approvals are highly anticipated. A modest growth rate is on the cards.

New Zealand:

  • ANZ Business Confidence is awaited as sentiment softens.

Japan

  • Japan’s consumer confidence came out at 43.3 points, within expectations.

Canada

  • Canada’s Foreign Minister Chrystia Freeland is in Washington and also talks to her Mexican counterparts.
  • Canada’s Current Account is scheduled for 12:30 GMT.
  • source:-.fxstreet.