“A strong patch of US data in Q2 and a relatively more hawkish Fed have placed renewed focus on “US divergence”, providing ample fuel for the USD,” notes Westpac’s Richard Franulovich. Key quotes “Eurozone data has been weak into Q2, raising the possibility of a more protracted downswing and the ECB pushed back the possibility of a interest rate increase deep into 2019. However, the perception of US outperformance may be approaching a local peak. As slide two shows the differential between our US and global data surprise indices is at unsustainable highs.” “CAD the most undervalued dollar bloc currency. AUD, NZD and CAD have all been trading weaker than high frequency measures of their terms of trade would dictate (see slide three). However, CAD offers the most compelling value from a commodity valuation standpoint. Energy prices have eased about 10% from their highs but even so CAD has materially undershot this year’s run-up in crude oil. NAFTA disruption risk is the obvious CAD headwind but against that the BoC is much closer to lifting rates than either the RBA or the RBNZ.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Bitcoin Cash Price Analysis: BCH/USD encounters several deadly candlesticks, with a gravestone doji in view, at risk of heavy drop back south FX Street 5 years "A strong patch of US data in Q2 and a relatively more hawkish Fed have placed renewed focus on "US divergence", providing ample fuel for the USD," notes Westpac's Richard Franulovich. Key quotes "Eurozone data has been weak into Q2, raising the possibility of a more protracted downswing and the ECB pushed back the possibility of a interest rate increase deep into 2019. However, the perception of US outperformance may be approaching a local peak. As slide two shows the differential between our US and global data surprise indices is at unsustainable highs." "CAD the most undervalued dollar bloc currency.… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.