EUR

The euro will be caught in the crossfire between the Brexit vote and ongoing Fed policy sentiment over the next weeks. Overall, expect steady and consolidative in the short term with periods of high volatility.

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GBP

We anticipate the GBP to be steady to weaker leading up to the Brexit vote.  A vote for Brexit will cause the GBP to weaken rapidly with potential global repercussions for interest rates and trade.

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CAD

Canada will remain captive to the near term direction of energy prices and Fed policy sentiment as the Bank of Canada is on hold indefinitely.  The CAD has been supported by the recent rally in oil but most of those benefits may already be priced in.

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JPY

Global uncertainty will continue to make the JPY a safe haven currency despite poor economic and financial fundamentals. Continued U.S. trade rhetoric leading up to the election will keep the JPY steady to firmer.

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AUD

Uncertainty regarding the direction of China's economy will keep the AUD contained and potentially pressured. The Reserve Bank of Australia appears to be on hold indefinitely.

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This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of City National Bank as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make an independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate fluctuations, political and economic risks, and other risks. The Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.