Investors focus on comments from the US President stating he wasn’t ready to make a trade deal with China and US not resuming business with Huawei yet. Without an end of trade tensions, Yen & Chf continue to rally with Yen hitting a seven-month highs vs US$.
Despite weak jobs data, investors focused on increases in wages giving them confidence in the Canadian economy. Oil prices came under renewed pressure on the back of Sino/US trade concerns, which will have a negative impact on C$. Our bias remains buy dips towards 1.3150 level.
Italian league party filed a co-confidence motion, with hopes of triggering fresh elections.
Eur remains remarkably resilient given the current economic and political concerns. Bias to sell any rally towards 1.1260.
GBP continues to sit at two-year lows vs US$ on the back of contracting UK economy and upcoming Brexit. UK press reported that Labour MP’s have been told to cancel travel plans in September in anticipate the opposition party leader will be tabling a motion of no confidence in the government. Next key support is 1.1979 (low Jan17), puts GBP in new territory with the potential of 1.1700 next.