ECB & BOE ON HOLD – DRAGHI IS EUR FOCUS
• USD is weak, with the DXY having retraced almost all of its May gains.
• Fed in tricky position as mtge rates rise, ADP & Beige book disappoint.
• CAD is range‐bound; Gov Poloz testimony is priced in as CAD negative.
• EUR rallies, ECB leaves rates on hold at 0.5%; Draghi speaks at 8:30am.
• GBP rallies as BoE leaves rates on hold at 0.5% & makes no chg to QE.
• JPY is strong as profit taking continues; technically bearish USDJPY.
•AUD hits new 1.5yr low as trade surplus falls & technical selling.
• FX conference call on USDCAD—see page 3 for details.
Read the full report: FX Daily
Scotiabank