UK election goes sideways, commodity currencies go up
The trio of NZD, AUD and CAD are easily the top performers this month. The strength in June is part of a seasonal trend that I highlighted three weeks ago.
What's particularly impressive is that the gains come despite weak commodity prices. Aside from fains and lumber, no commodity has gained more than 0.5% this month. On the flipside, oil is down more than 10%. Metals have also struggled.
What's supported the commodity bloc was central bankers. The RBA brushed aside a weak Q1 and the BOC took a hawkish turn.
The other end of the spectrum is also notable. The pound at the bottom isn't a surprise after Theresa May's struggles but at the start of the month the enthusiasm for the euro was palpable. What derailed it was soft inflation and an increasing feeling that the ECB won't begin a hiking cycle just because QE is nearing a taper.
