BOC bearish comments on the economy, as well as weaker oil and base metals saw C$ continue to weaken against the US$. In the short-term, look to buy US$ on dips with the potential retesting of the highs of Dec 2018.
The US$ stalled morning after hitting a new two-year high on news that central banks around the world are lowering rates to combat a global economic malaise. The overall trend remains towards a stronger US$.
The EUR fell yesterday to new two-year lows on a surprise announcement that the European Central Bank will lower rates to shore up a weak economy. Increased risks from Brexit are also driving down GBP. Any strength in EUR or GBP should be sold as any rally’s will likely be short-lived.
- Drummond Gill