Wednesday June 26th, 2019

Fed comments yesterday that its “grappling with whether current risks to the economy warrant rate cuts” saw equity markets ease and US$ rally. Oil also rallied on the news of the possible permanent closure for the Philadelphia refinery. G20 summit remains the primary focus for investors for both the trade dispute and direction for Iran/US tensions. US durable good data out this morning could provide intraday direction.

US$ weakened vs C$ overnight, primarily on the back of stronger oil prices. C$ is sitting at mid-Feb lows, with the possibility of a further cent rally is achievable. Bias is to buy US$ dips as the C$ rally has been mostly predicated on stronger oil prices, which could easily fall again.

Eur sold off overnight on the back of FED comments. Investors are somewhat sidelined until after the G20 summit. Longer term our bias remains sell Eur rallies.

GBP sold off on comments from Boris Johnson reiterating if he becomes PM he will exit EU by Oct 31st, with or without a deal.