Comments of “testy” trade relations between US/China, protests in Hong Kong and attacks on oil tankers saw safe-haven currency buying. Investors nervous of current market conditions turned back to safe-haven currencies and the US$ indexed edged slightly lower. Oil prices regained the 2% it lost this week after two oil tankers were attacked in the Gulf of Oman.
C$ is holding steady, any potential rally on the back of the spike of oil prices could be short lived. Concerns over US/China trade and global growth will continue to have a negative impact on C$. Continue to look to buy on dips scenario.
Today’s data showed the Euro zone industrial output fell for a 2nd consecutive month. Eur continues to trade within a tight band and it’s hard to see any short term reasons why this will change.
UK saw opposition party attempt to block a no-deal Brexit defeated by law-makers. Conservatives start their first round of voting for a new leader today and the process is expected to be completed by the end of July. Despite the uncertainties GBP weakened slightly, but remains within its current trading band.
Expect more uncertainty for the rest of June with trade issues, ME oil and potential Fed rate cuts.