• Headlines
  • Euro lifted with state vote
  • US manufacturing slows
  • Whatever it takes

Good morning,

Geopolitical headlines are monopolizing the news cycle this Monday morning. Emmanuel Macron was sworn in as the French president and he named Edouard Philippe as Prime Minister. Macron is also preparing for his first official state meeting as president with German Chancellor Angela Merkel, a further testament to Macron’s commitment to the European Union and the single currency. North Korea is propelling towards the capability to launch intercontinental ballistic missiles which will likely weigh on risk appetite.

Angela Merkel’s party took home a big win this weekend with a surprisingly strong victory in a state that usually swings to a rival political party. The Christian Democrats victory in their rival’s heartland is being hailed as a barometer for the general election which will take place this September. Victory for Angela Merkel and her conservative party will most likely play well for the euro.

Oil prices are firmer after Saudi Arabia and Russia both announced that they would extend production cuts into March 2018. The two biggest oil exporters have “agreed to do whatever it takes to achieve the desired goal of stabilizing the market,” boosting not only the price of crude oil, but other commodities and the currencies linked to them including CAD.

EURUSD: Euro lifted with Angela Merkel’s conservatives taking a key state from their rival party.

GBPUSD: Sterling higher against the greenback as Theresa May’s party leads in the polls.

AUDUSD: Aussie dollar higher, lifted with firmer commodities prices after oil jumped.

USDCAD: The loonie is stronger against the USD as higher oil prices spill across.

USDJPY: the yen is flat against the USD despite rising tensions with North Korea who successfully launched a missile test this weekend.