Monday June 3rd, 2019

Trade tensions continue to grow beyond China to Mexico and India, which saw safe haven currencies continue their rally. Yen & Chf both hit 2 year highs vs Eur on Friday. US 2 year treasury yield saw its biggest 2 day fall since 2008, causing some unwinding of long US$ positions in Asia this morning.

US$ weakened slightly against C$ down from the 4 month highs seen on Friday, but C$ isn’t out of the woods yet. Ongoing trade tensions, weaker oil and concern over USMCA completing after US announced tariffs on Mexico remain a concern for the C$.

Euro remains under pressure, but is consolidating vs US$ near its two year lows. EU political issues and trade tensions continue to linger, keeping pressure on the currency. G20 at the end of the month is probably the first opportunity we may see to possibly ease trade tensions if US & China decide to meet.

PM May stepping down Jun 7th, with no successor named and no Brexit decision in sight, GBP remains vulnerable to market swings.

The selloff in US Treasuries has seen speculation of a FED cut growing, which may reduce US$ as a safe haven status currency and reducing the prospect of further US$ rallies. Next key data to watch for is Canadian and US jobs data out Friday.