Thursday May 16th, 2019

Mixed news overnight saw US$ weaker vs Eur & C$, but the GBP sell off continues.

C$ rallied on a combination of firmer oil prices, optimism over metal tariffs and positive inflation data. We are currently sitting in the middle of recent ranges, bit a bias of further US$ weakness. A retest of April’s lows should present a good US$ buying opportunity.

Comments of delayed tariffs on German automakers saw Eur bounce back vs US$. The rally stalled ahead of the upcoming European parliament elections. Eur may extend its rally, but will be contained within its current range until after the elections..

GBP sold off aggressively overnight with the deadlock in Brexit talks frustrating the market. Our bias is GBP remains bullish and current levels may present a good long term buying opportunity.

In other news, A$ hit a 5 month low. China economic concerns, the prospect of a RBA rate cut and the upcoming general election all adding to a weaker A$.