Thursday July 18, 2019

US$ is down against most majors for the second day after weaker housing data yesterday and softer U.S Treasury yields. Investors seem to be gearing up for next weeks policy meeting where 25 basis point rate cut has been built into the money market.

C$ is firm this morning against the USD with oil  also slightly higher.  Yesterdays June inflation was in line with core readings as expected and held steady around Bank of Canada’s target.

EUR is up this morning and trading has been in a narrow range for the last few days as investors are expecting the ECB to follow the Feds footsteps in terms of easing policy.

GBP is slightly higher this morning after surprising stronger retail sales of 1% compared to consensus estimates of 0.3%. Meanwhile fears of a no-deal Brexit was partly mitigated by a move by British MPs to bringing a clause looking to ensure parliament not be suspended on key dates in October.