The trade rhetoric continues with a senior Chinese diplomate saying the trade dispute was “naked economic terrorism”. The US$ index is close to a 2 year high and with no solution in sight, investors continue to focus on safe-have currencies.
US$ sold off slightly as oil bounced modestly from 2 month lows helping C$ recover. The ongoing US/China trade tensions continues to pressure C$ and the prospect of testing the US$ highs of Dec18 remains strong
EU political uncertainty and continuing trade tensions see’s Eur sitting close to 2 year lows. In the short term the prospect of a Eur rally seems slim.
Britains finance minister warned prospective PM candidates that a no-deal Brexit would threaten the UK’s cohesion and that they should tone down irresponsible spending pledges. With so much political uncertainty as we enter June, we expect GBP to remain under pressure and volatile.