The US dollar perked up amid the risk aversion sentiment. Earlier, the commodity currencies were gaining ground amid optimism about progress in the trade deal. The Canadian dollar was trading steadily at near a three-month high but it has given in to the greenback’s pressure. The pound sterling retreated from the highs before the crucial Brexit vote in the UK Parliament. The euro bulls avoid big bets in light of the news from the European Commission. The EU executives reported that five countries in the euro bloc, including France and Italy, submitted draft budgets for the next year that might breach EU fiscal rules. Meanwhile, the US dollar took advantage of the situation and halted its decline which had lasted for a few straight days. Its index opened the North American trade higher at 97.15 but its growth is subdued. The US dollar’s dynamic is driven mainly by Brexit developments and events in the EU, though investors shift focus away from the greenback. Today the sterling is facing a challenge. If the British lawmakers vote for the Brexit deal suggested by Boris Johnson, the pound will receive a boost. If the deal does not pass the vote, the pound will tumble in response. The federal election is over in Canada. Prime Minister Justine Trudeau won the election
and ensured his second term in the office. At the same time, the Liberals failed to form a majority government in favor of the Conservative and left-leaning parties. The Canadian dollar climbed against its American rival trading at near a three-month high. In the North American session, the loonie weakened again to the level above 1.30 versus the US dollar. Despite steady trading, the Canadian dollar signals prospects of a further decline.