The currency markets are relatively stable ahead of this weekend’s G20 Summit & possible trade dispute resolution. The US & Chinese leaders to meet on Saturday and markets are optimistic of a positive outcome.
C$ hit close to a 5 month highs vs US$ yesterday. Oil prices going into the G20 summit remain close to their recent highs helping C$ to edge stronger. C$ remains vulnerable to any negative G20 news, bias remains to buy US$ dips at these levels. Canadian GDP out this morning may provide some intra-day direction for the currency.
Eur is finishing June trading at close to 5 month highs vs US$, a gain of almost 2% for the month. Anticipated further easing by ECB, domestic issues and Brexit continue to raise longer term potential for the currency.
GBP fell to a 5 month low vs Eur as nervousness over Brexit persists. UK PM isn’t expected to be named until the end of July so anticipate GBP volatility to remain.