Tuesday June 25th, 2019

US$ continues to weaken hitting 3 month lows vs Eur and Yen. The potential of the FED cutting rates as soon as July causing the US$ sell off. Yen rallied on general US$ weakness and safe-haven buying from Iran/US tensions. The market is also clearly focused on upcoming G20 and the possibility of the US/Chinese leaders discussing the trade dispute.

C$ rallied overnight as oil prices remain firm. C$ has failed to break through the lows of Mid-Feb which is key if we are to achieve 1.3060 objective. Weakening manufacturing numbers out of the states suggest falling crude demands, which could negatively impact C$ going forward.

EUR rallied to 3 month highs vs US$ primarily on the back of FED expectations but failed to extend its rally. Ongoing domestic concerns and Brexit should cap EUR rally and bias remains to sell EUR on rallies.

Front runner for PM Boris Johnson reiterated his promise on Monday to take UK out of EU by Oct 31st with or without a Brexit deal. GBP rallied overnight, but this was on general US$ weakness and GBP remains vulnerable.