EUR edged up near 2-Year high

Last Friday, the Dollar headed for weekly losses, wallowing at its lowest levels against the Euro ($1.1659) in nearly two years after what markets perceived as hawkish talk from European Central Bank chief Mario Draghi. His comments were perceived as “hawkish, even though the ECB didn’t mention when it will begin balance sheet normalization and in fact left the door open to additional easing if needed. The Euro broke through $1.16 after Draghi said that the currency’s recent re-pricing had received “some attention”, without specifically saying he was concerned about its strength. That reference helped boost the EUR, while European bonds rallied following the meeting led by those of Spain and Portugal.

Meanwhile Gold held steady near a three-week high and was on track for a second consecutive weekly gain, underpinned by a weaker Dollar and US political uncertainty. Heightened political concerns surrounding investigations into President Donald Trump’s campaign ties with Russia are currently the key driver supporting Gold prices.

Last Thursday, the Canadian Dollar extended a 14-month high against its USD as Oil prices rose and the greenback fell against a basket of major currencies, with analysts looking to  domestic data for clues on the next move. The Loonie has strengthened steadily since June, when the Bank of Canada took a more hawkish turn, with the move getting fresh legs after the Central Bank hiked interest rates last week. The Central Bank said it needed to look through soft inflation data and would wait for more economic data before committing to its next move, making June inflation and May retail sales data that were due last Friday key to the short-term trend.