Thursday July 11th, 2019

US$ sold off to a weekly low on the back of FED chiefs dovish comments. The FED chief pointed to broad global weakness and set the stage for a rate cut in July. The market will focus on US CPI data out this morning and further testimony from FED Chief today.

C$ strengthened vs US$ from strong oil prices, BOC holding rates and the FED chiefs comments. C$ opens at the key support level 1.3050, the strongest level since late Oct2018. A break here could see potential retest of 1.2780 the low seen Oct 1st 18.

Eur firmed against the US$ on the back of good German data and FED chiefs comments. Expectations is that ECB could follow any FED easing which will would suggest possible EUR rallies will be limited.

GBP bounced from its recent lows, but with some much uncertainty for the currency ahead of BREXIT expect GBP to remain vulnerable to further sell off.