Monday 27th May, 2019

Euro opens slightly stronger as Pro-EU parties retain their hold on the EU parliament, but concerns as Eurosceptic’s made strong gains. Focus is back on US/China escalating tensions over trade/technology and the FEDs response to worsening economic outlook. With the US & UK both out today, expect the markets to be muted and contained within current ranges.

 

US$ remains relatively unchanged agains C$, oil prices slightly firmer will stall any inter-day US$ rally. Short term bias remains US$ weaker to the lower end of recent ranges.

 

Eur bounced slightly on the EU election news, but failed any attempt to rally. The US & UK holidays and focus back on trade & the FED we expect Eur to remain range bound.

 

GBP remains volatile, prone to swings as PM May’s successor is selected and a Brexit solution is developed in June.