CURRENCY STRATEGY HIGHLIGHTS
• After a shaky couple of weeks our bias for being long the US$ is bearing fruit again. We may have already seen most of the move against the yen and A$, but we still see the greenback gaining a few more cents against sterling, the euro and C$.
• With the UK economy showing signs of improvement and the Eurozone remaining in a shallow recession, we prefer sterling over the euro.
EVENTS TO WATCH IN COMING MONTH
• New BoC Governor Steven Poloz may not preside over his first meeting until July 17th, but markets will be eyeing a speech set for June 19th for any hint of a new view at the Bank. We doubt there will be much to chew on just yet.
• Recent Fedspeak clarified that a decision on tapering isn’t in the cards for June. But FX movements globally will continue to be shaped by US data releases and their impact on expectations for when that date might come.
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CIBC