Crude oil pressure pushes Loonie lower

Key Movers

The U.S. dollar is benefiting almost as much as the Aussie dollar from the U.S.-China trade truce this week. Additionally, with the Interim China deal, Trump administration officials have discussed offering a limited trade agreement to China that would delay and even roll back some U.S. tariffs in exchange for Chinese commitments on intellectual property and agricultural purchases, according to Bloomberg. Furthermore, China added U.S. soybeans and pork to its list of goods exempted from new tariffs. Talks with Washington are planned in the coming weeks.In the U.K. with Brexit 48 days away, the British Pound has hit its highest level against the U.S. dollar since July amid hopes that a no-deal Brexit can be avoided. In the ECB’s decision yesterday, there was opposition from ECB governors representing Germany, France, Austria, Estonia, and the Netherlands. However the deposit rate was reduced further to minus 0.5 percent from minus 0.4 percent, and the ECB said it would buy debt from Nov. 1 at a pace of 20 billion euros a month for as long as necessary to hit its inflation target. However, many market participants have mentioned that lower rates and QE are unlikely to have much effect on the Eurozone economy and that Draghi knows that the lack of action would be worse.