The C$ is lower overnight giving up everything that was gained yesterday despite strong oil prices. We see C$ continuing to weaken over the longer term as Canadian bond yields weakened to less than 1.6%, so any rally is an opportunity to sell C$.
The US$ has been trading in a wide range the last couple of weeks and is likely to remain quiet today while waiting for direction from GDP and employment numbers due tomorrow. We foresee a long-term stronger US$, but with a volatile range this week that could provide opportunity for US$ buyers.
EUR and GBP are also quiet this morning and will likely remain so for today. There is news of weakening political opposition to Brexit within the Tory party. This week could have a surprise Brexit announcement that could temporarily drive EUR and GBP strength providing a EUR selling opportunity in a long-term downward trend.
- Drummond Gill