Comments from the Fed Chairman saying it was changing its approach to rates from “patient” to “as appropriate” saw US$ sell off to a 7 week low. Recession concerns globally have seen Central Banks in recent weeks cut rates and possibly signaling the start of global monetary easing.
US$ continued to weaken vs C$ giving a glimmer of hope that we could see retest of lows last seen in March. Mexican officials are meeting in Washington in efforts to avoid tariffs, if successful it will be positive for USMCA going forward. Longer term C$ strength remains slim, look to take advantage of any dips to buy US$ short term.
It is a weaker US$ vs stronger Euro scenario. Euro central bank meets Thursday and market awaits their comments on the recent downturn in growth. EU Commission appears set to launch a disciplinary procedure against Italy over its budget initiatives. Political and economic concerns may stall any short term Euro rally.