Tuesday July 2nd, 2019

Global economic concerns continue, despite US & China trade talks restarting. A weak manufacturing survey, $4bln additional tariffs proposed on Europe and OPEC cutting production, saw US$ rally stall overnight. US holiday Thursday and NFP (Non-Farm Payroll) Friday may see investors sit on the sidelines for the next few days.

US$ firmed against C$ despite stronger oil prices and OPECs comments. Look for the lows of Feb to become a resistance point this week, with a bias to continue to buy US$ dips.

Eur slipped vs the US$ on the announcement of additional $4bln in tariffs from the US. Brexit and ongoing domestic issues continue to weigh on Eur. This week expect the market to be sidelined waiting for NFP out on Friday. Our bias remains sell EUR on rallies.

GBP remains steady on comments from Jeremy Hunt PM contender, that the German Chancellor was willing to look at proposals for a revised Brexit deal. overall, GBP remains vulnerable to volatility until a PM successor is named and a Brexit strategy is formulated.