Monday July 29th, 2019

US$ continues stronger, sitting at 2 month highs vs most major currencies. Better than expected GDP Friday and comments of no intervention by US Administration to weaken USD. Expectations of a positive outcome from this weeks US/China trade talks are low. The primary market focus this week is the FED meeting and expectations of 25 BP cut in interest rates.

C$ weakens to a 1 month low verse US$, on a combination of general US$ strengthening and lower oil prices. “Constructive” talks between Iran and nuclear agreement signatories saw oil sell off slightly. Expect range bound markets today as we await the FED Wednesday.

EUR remains sidelined between the FED decision, US/China Trade talks and Brexit negotiations. The primary focus will be on ECB’s response to FED easing and expectations Europe will follow.

GBP remains under pressure as the prospect of a Brexit deal looks dim at the moment. Comments over the weekend that the Europeans appear unwilling to renegotiate increases the prospect of a “No-Deal” exit for Britain.