US$ continues to slowly weaken vs major currencies on expectations of a FED cut by the end of the month. A stronger than expected US CPI data failed to deter the FED from cutting interest rates. Expectations of a Sino/US trade resolution appears to be some distance away. Tariffs appear to be impacting China as June imports from the US fell 31.4% and exports to the US fell almost 8% verses June 2018.
Investor interest in Canada continues, with BOC expected to keep interest rates on hold and strong oil prices boosting C$. The breach of 1.3050 overnight was key and C$ looks set to extend its current rally vs a weakening US$.
Stronger than expected Eurozone industrial production failed to rally EUR, which continues to languish within a tight trading range. Expectations of further ECB stimulus following FED easing and Brexit continues to overshadow the currency.
GBP set a 10th week of losses vs EUR as PM leadership, Brexit and expected rate cuts continue to weigh on the currency. BOE official commented that interest rates may be cut to zero in the event of a “NO-Deal” Brexit.