Friday July 19th 2019

US$ recovered slightly this morning having heavily fallen and dovish comments from NY FED John Williams yesterday of an aggressive interest cut this month. It had rebounded slightly after a representative at the NY Fed said Williams comments were academic and not about immediate policy direction. Markets remain cautious ahead of the US Michigan Consumer Sentiment. The US consumer confidence gauge is expected to be 98.5 from 98.2.

C$ slowly down, but the markets remain cautious ahead of Canadian retail sales data today. Canadian data should show 0.3% growth versus 0.1% prior on a monthly basis with Core figure likely rising to 0.4% against 0.1% previous readouts.

EUR has weakened  but remained firmly within its weekly range as traders look towards next weeks ECB meeting. Other news yesterday to keep an eye where headlines suggesting that ECB’s members are studying the possibility of revamping their inflation target below but close to 2%.

GBP is slightly down this morning after Britain’s budget ballooned in the first three months of the tax year, putting finances on shakier footing for the new Prime Minister next week and clutching costly spending pledges.  All has seem to be forgotten from yesterdays  biggest  daily jump in more than months for the pound as traders focus on the growing risks of Britain leaving the European Union without a deal on place by the end of October.