Money Flows before the start of the European session

The Brexit event over the weekend spurred hopeful investors who thought there was a high chance the UK Parliament would approve the Johnson deal. On Friday, it was accepted by the EU, further intensifying bets on soft Brexit. Rather than support and vote in favor of ending the saga, Johnson was literally shot dead inter-party, delaying the vote on the deal itself. This forcefully led to an EU request for an extension of Brexit beyond 31 October, but it will not necessarily be granted. EU leaders are again on standby until some developments occur in the coming days.

This week, the British government will present a formal divorce agreement and try to push it through parliament. We expect a decisive vote next week. Johnson is having a tough fight. In Brussels and in Parliament.

So today and this week we will expect cash flows to mainly revolve around the pound and its crosses. We expect the currency to remain volatile, but even with a weak start to the currency, there is also a chance of avoiding hard Brexit, which will support the pound. However, strategists remain skeptical that there will be any developments this week.

Elsewhere, over the weekend, there was a comment from China's Deputy Prime Minister, Liu He, that the US and China had made "significant progress" in the talks. After reaching a partial deal earlier this month, Beijing and Washington are working to make the deal black and white.

Against the backdrop of the still fragile optimistic mood for the Brexit deal, we expect European markets to open with minimal change, but on the green. Cash flows will be driven mainly by Brexit news, because the economic calendar is empty today. From European companies, today Klepierre publishes their reports.

European (and US) indices are rising, gold is almost flat with minimal changes south, the yen remains weakly sought, as is oil, and the US dollar is inferior, as is the Swiss franc. The euro starts the new week with an increase. The market at this stage indicates that cash flows are looking for a risk, which we will only see if it stays until the end of the week.

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