USDCAD Open 1.2868-73 Overnight Range 1.2853-1.2919
NOTE: This chart represents gain (or loss) of G10 currencies vs. the US dollar from NY close-Jun30 (4pm) to July 4 7:30 am EDT
The US dollar is softer against all the G10 currencies except for GBPUSD in a relatively quiet overnight session. It gets even more quieter from hereon in, as the US is closed for Independence Day celebrations.
UK politics remains front and center. UKIP leader, Nigel Farage resigned, joining his fellow Brexit advocate, Boris Johnson, to collect their government pensions while hoping that someone else can fix the mess that they created. It gets messier. A London law firm says that Brexit cannot happen without an act of Parliament and says it is representing a group of clients threatening to sue the British government if it tries to leave the EU without a vote.
Silver prices are getting a lot of attention after nearly hitting a two year high and gaining 50% since the beginning of the year bolstered by investment and speculative demand. Commodities are generally higher.
The Australian dollar had an exciting day. It gapped lower at the open on the non-official election results that failed to identify a clear winner setting the stage for another coalition government. The final result will not be known until Tuesday. AUDUSD closed at 0.7497 on Friday and opened at 0.7433. It has since rallied and is well above Friday’s close at 0.7525.
Asia equity indices rose while their counterparts in Europe declined.
The Bank of Canada business outlook survey is due today. There should be no FX reaction as Brexit/EU issues remain the only market focus. Today’s US holiday will ensure a very quiet day.
Today’s Range 1.2830-1.2920
Source: Saxo Bank