This morning MNI ran story that outgoing Bank of England MPC member David Miles, whose always been a hawk, that time for the first rate hike is approaching, but also said it is not yet time for tightening. He said he expects rate hikes to be limited and gradual. Miles will leave the committee at end of Aug. Gbp rather unchanged on those remarks but EurGbp was 5 pips lower. Offers in GbpUsd are found above 1.5720 from various names and Asian bids below 1.5600.
UsdCad bids are starting to build below 1.3040 and grows towards figure. Oil price having a big impact overnight – our Cad strategist Bipan said there is topside exhaustion but we still continue to wait for better levels to get long. Our trader Sam sticks to his long UsdCad view short term stop at 1.2990 and longer term under 1.2940. Rates perspective, yield of 2-year UST vs 2-year CAD bonds indicating spot should be in the 1.3130’s.