Wednesday July 3rd, 2019

US$ eased overnight on a combination of falling optimism on a US/China trade resolution, European tariffs and anticipated rate cuts. Going into US holiday tomorrow and Non-Farm Payroll (NFP) on Friday, investors appear hesitant and sidelined.

C$ remains caught inside a tight trading range, with economic concerns being offset with stronger oil prices. Oil rallied overnight as crude stock piles dropped and OPECs comments for reduced production. Jun 28th lows remain a key support, which should hold until NFP provides direction on Friday.

EUR remains contained within its current range despite the prospect of additional tariffs being imposed by the US. Expect range bound markets until Fridays NFP.

Anticipation that the BOE could cut rates saw GBP fall quickly to a 2 week low vs US$. Expect GBP to remain volatile until the end of the month when the new PM is named.