US$ continued to firm overnight with investors scaling back expectations on the size/speed of future FED cuts. FED chief comments in front of congress today will be listened too closely to gauge interest rate direction.
Despite firm oil prices and expectations BOC will hold rates at current levels, C$ drifted lower to 8 day low vs US$. C$ remains within its recent trading range, BOC & FED comments will key to set the tone today. Under the current conditions we expect C$ has the potential to breach the key support level 1.3050.
Eur is holding at 3 week lows vs US$, drifting lower on general US$ strengthening. No fresh data directing Eur, so the currencies direction will be dictated from FED chiefs comments today.
UK had some positive growth data for May, but it had little impact and the currency as it continues to stall near 2 year lows. Ongoing PM leadership race, Brexit as well as the leaked Ambassador memo’s ramifications hang negatively for GBP