The C$ is testing the lows of the last 2 weeks this morning on rumours the Bank of Canada might lower rates to stimulate the economy. We believe the overall trend is towards a weaker C$ and any strength is a selling opportunity.
After rallying overnight, the US$ fell back and is opening unchanged in a quiet range this morning. The US$ should remain quiet today awaiting trade and economic news, but over all we see the US$ continuing its strengthening trend and weakness should be bought.
The EUR is holding well despite news the European Central Bank is worried about the economy and might lower rates. We see further strength to new 2-week highs this week.
- Drummond Gill