Tuesday June 18th, 2019

The US$ gained after hints from the ECB of more stimulus if inflation doesn’t pick up. FED starts two days of meetings today, any signal of a neutral stance, expect to see the US$ rally again.

Weaker Oil prices and expected hold on rates by the FED saw C$ continue to slowly weaken against the US$. Canada’s inflation report May is due out tomorrow, this could give us an insight into BOC’s next move. In the current market conditions expect C$ to continue to weaken towards May 31st levels.

Eur weakened on the ECB’s comments which appears to be in line with the central banks overall strategy. Expect any rallies today to be muted as he markets will wait for FED’s comments tomorrow for direction.

Boris Johnson continued to pick up support and looks the favorite as the 2nd round of ballots for the PM leadership race takes place today. Concerns of a “no-deal” Brexit remain if Boris Johnson is elected, with GBP selling off today.