Tuesday May 21st, 2019

US$ continues firmer against most currencies as US-China trade concerns continue to linger. Expect US$ to remain firm as US treasuries yields rose and concern over upcoming EU elections.

 

US$ eased against C$ with the lifting of tariffs and expected ratification of the USMCA trade deal. In addition, stronger oil prices should be an added positive for C$. we expect US$ to weaken and test key support levels of April’s lows.

 

Euro continues to look soft against the US$ ahead of the EU Elections. We expect Euro to remain weak this week and re-test recent lows.

 

In UK Brexit woes continue as the cabinet meets to consider voting on exit options. GBP is at 4 month lows vs US$ and until a decision is clear, GBP will remain under pressure.