- Weak US NFP number gives Loonie a lift.
- Quiet data day to start the week
- USD nursing Friday’s losses after quiet overnight session.
USDCAD open: 1.3942, overnight range 1.3933-1.3964. close 1.3942, WTI 78.94, Gold 4,339.18
The Canadian dollar rallied Friday and is consolidating the gains this morning. The Loonie remains vulnerable to the ongoing CUSMA negotiations and Trumps threat for 50% tariffs on Canadian exports beginning August 19.
WTI oil traded higher in a 77.80-79.59 range and remain near the top of that band in NY. Hopes for a quick end to the US and Iran hostilities evident last week, faded.
The greenback took a beating Friday after US payrolls came in at negative 23,000 for July, a number nobody in the market was braced for. Downward revisions to May and June only piled on, trimming the odds of a September hike to around 43%.
Fed Vice Chair for Supervision Michelle Bowman added her own weight to the selloff over the weekend, saying that current policy is well positioned to grind inflation down to target. Attention now shifts to Wednesday's CPI print, which will either confirm the dollar's slide or give it a reason to pause.
Trump and Iran remain locked in their standoff. The Strait of Hormuz is still closed and Iran says it will stay that way until Washington discusses reparations and lifts the blockade. Oil nudged higher on the headlines.
Asian equities mostly firmed overnight. Australia's ASX 200 was the outlier, down 0.33%, while Japan's Topix added 0.63% and Hong Kong's Hang Seng jumped 1.05%.
EURUSD ticked higher in a 1.1548-1.1568 band and traded with a modestly bullish tone while, while above 1.1520. The Eurozone calendar is light this week so the single currency will look to America for direction.
GBPUSD was steady in a 1.3483-1.3507 range supported by ongoing bearish US dollar sentiment and last weeks modestly hawkish Bank of England monetary policy outcome. Q2 GDP headlines a heavy UK data slate on Thursday.
USDJPY traded higher in a 158.79-157.58 range after Friday’s NFP losses faded due to higher oil prices and and a wide US/Japan interest rate spread.
AUDUSD is firm in a 0.7057-0.7075 range as it continues to be supported by Friday’s post-payrolls bounce. The RBA is expected to leave rates unchanged at tomorrows meeting.
There are no top tier US or Canadian economic reports today.
