Friday June 7th, 2019

The prospect of the FED cutting interest rates, on going trade tensions has caused the US$ to sell off in recent days hitting a 2 month lows. Jobs data in the US and Canada, but any impact from positive data will be short lived. The markets are waiting to see any positive comments from US/China at the G20 meeting this weekend and if Mexican tariffs go into effect Monday.

 

US$ weakened against C$ on the back of stronger oil prices and positive trade data. We continue to feel as long as US/China trade tensions continue, C$ has limited upside. Look to take advantage of these current levels to buy dips. Jobs data this morning may give C$ a boost back to April levels.

 

Euro had its strongest week in 2019, but it is a US$ weaker scenario vs stronger Euro scenario. Equity markets rallied on the prospect of lower interest rates and Euro remains contained within its current tight range.