Friday May 17th, 2019

Safe haven currencies gain ground as concerns continue for a US/China trade resolution and caution ahead of the European elections.

US$ rallied against C$ despite firmer oil prices and good Canadian data. Ongoing oil supply concerns should keep prices oil firm in the short term and expect no break out of current ranges US$ vs C$.

Euro remains under pressure in the short term from the Italian PM comments and upcoming European elections. Our bias is to see Euro remain within its current range today, but the possibility of a further Euro sell off remains.

Another messy day for GBP as the opposition party declares Brexit talks dead and PM sets out her departure date at the end of June. GBP took another beating hitting a 4 month low. In the short term, GBP remains vulnerable to further sell off.

European elections and trade talks continue to dominate the markets short term direction. Today we are not expecting any fresh news and don’t expect to see any key break out of current ranges.