Sterling plunged briefly below $1.24 for the first time in 27 months on Tuesday and also hit six-month troughs against the euro as the two candidates to be Britain’s next prime minister vied to outgun each other on taking a harder Brexit stance. Their positions appear to be leading markets to price a sharply higher risk of Britain leaving the European Union on October 31 without any transition trading agreements in place. That would potentially force the Bank of England to cut interest rates to stave off an economic catastrophe.
Oil prices are relatively stable, still hovering around the $60 USD a barrel for West Texas Intermediate, expectations of lower inventory numbers tomorrow are providing the foundation for its price.
The USDCAD is slightly lower expect a narrow range today.
Currently Close Range
USDCAD 1.3038 1.3049 1.3023-1.3065
EURCAD 1.4625 1.4690 1.4606-1.4702
GBPCAD 1.6175 1.6331 1.6146-1.7797
US: Retail Sales June M/M 0.4% 0.4%
Industrial Production June M/M 0.4% 0.0%
Manufacturing M/M 0.2% 0.4%
Capacity Utilization 78.1% 77.9%
Business Inventories May 0.5% 0.3%
Housing Market Index July 64 65