Commodities Daily - October 21, 2019

> Oil steady amid China's September data, US-China trade deal hopes and Brexit turbulence. Brexit will be dominating global headlines and largely determining risk sentiment this week. The UK Parliament will likely see another critical Brexit vote, yet again on whether to approve Prime Minister Boris Johnson's revised deal with the EU. Today, we think that news of a Brexit delay would support the dollar and thus weigh on oil prices. We see Brent likely dipping slightly below $59/bbl today.> Gold prices remain range-bound but could move lower on Brexit delay, likely stronger dollar. The EU is reportedly ready to provide the UK a three-month Brexit extension, which means that the chances that Johnson's deal will be accepted by Parliament have diminished. We therefore expect the dollar to advance against the pound and euro, paring back the losses sustained last week on the Brexit optimism. This would likely push gold prices lower - we expect gold to head toward $1,480/oz today.