August 1st, 2019

US$ rallied vs all currencies from Fed Chiefs comments “Mid-cycle policy adjustment as opposed to the start of a rate cutting cycle”. Almost un-notice the China/US trade talks wrapped up “constructive talks” and are set to continue in September. Focus will shift to today’s  US ISM Manufacturing PMI and Non-Farm Payroll (NFP) tomorrow, for short term direction.

C$ hit a 5 week low vs US$ which was relatively positive vs other currencies performance. US oil inventories fell more than expected and Canadian economy grew more than expect in May. Expect C$ to hold within its current trading range.

Euro sunk to a 2 year low vs US$ after the Feds announcement. Technically the currency breached a key support level, suggesting that further weakness is anticipated.

GBP continues to weaken as the Brexit deadlines continues to creep closer without a deal insight. A lot of news from the BOE today, releasing their quarterly inflation report and BOE governor speaking. Expect continued volatility and further downside risk for GBP during Brexit negotiations.