Despite a rally in oil overnight the C$ is having difficulty gaining any strength due to a weak economy and the low probability of higher rates going forward. Still continued oil strength should help the C$ today and tomorrow providing an opportunity for importers to buy US$ as the long-term trend remains down.
The US economy may not be strong, but it’s stronger than anywhere else. The US$ experiencing volatility that could provide a good buying opportunity for importers later today or tomorrow. Overall the US$ is trending higher over the long-term and exporters can benefit from waiting before repatriating funds.
Brexit news is creating volatility in overnight markets that will likely continue for the next few days. The UK Parliament has a vote later today on a new proposal. A positive vote will send the EUR and GBP higher providing an opportunity for EUR sellers.
- Drummond Gill