Yesterday’s C$ strength to new 3-week highs was very brief as the C$ reversed and is retesting the lows this morning after initial concerns over rate increases proved unfounded. C$ remains stuck in the same range of the last six weeks, but we continue to look for opportunities to buy US$.
The US$ is very strong testing the highs again for the fourth time since the beginning of March. The US$ will eventually break through on strong economic strength. Employment numbers are due today that might give a reason to do it today. Continue to buy US$ on dips.
Other news, EUR and GBP are sinking to the lows as a new Brexit party is created in the UK that polls show is more popular than the Tories and Labour.
- Drummond Gill