Rising tensions between US-Iran saw Yen rally on safe-haven buying as concerns of possibly military strikes grow. Currency markets were generally quieter in Asia as investors monitor M.E tensions and await any developments from the China/US trade discussions.
US$ weakened to its lowest level since Mar1st vs C$ with firm prices, positive trade tones and Mexico ratifying the USMCA agreement. The current market conditions favor a continued C$ rally, we should look for a test of Feb1st levels next.
EUR rally appears to be stalling vs US$ despite positive PMI data from France and Germany. Domestic concerns remain and with the prospect of a “no-deal’ Brexit should keep EUR capped in the short term.
GBP weakened as Boris Johnson looks favorite to be named the next PM in the UK by the conservatives in July. The likelihood of a “no-deal” Brexit will weigh on the GBP in the short term.