Iran/US tensions and the up coming G20 summit are the markets primary focus this week. Oil prices continue to strength on the back of the US/Iran tensions. The anticipated meeting between the US & Chinese leaders to resolve the trade tensions will be held on the weekend. US$ is at a 3 month low vs the index of currencies, but markets appear to be stalling awaiting fresh news.
Stronger oil prices and the prospect of possible trade resolution favors C$, but C$ appears stalled at current levels. No key Canadian data until Fridays GDP, so C$ could be prone to swings. Bias to buy US$ on dips back to Feb19 levels as oil prices could fall on easing of tensions between Iran/US.
Eur at 3 month highs vs US$ but is struggling to maintain its rally. With ongoing domestic political concerns and Brexit unresolved, bias to sell Euro on any rallies.
UK the rhetoric between to the two leading PM candidates is building as Hunt ask Johnson to debate Brexit. Johnson remains the favorite, but as anxiety over Brexit grows Johnson will need to provide details on his strategy. GBP remains vulnerable during the PM transition period.