- Overnight action was subdued ahead of today’s pending US data dump
- Swiss National Bank leaves rates unchanged at 0.0%, as expected.
- US dollar consolidating recent gains in quiet trading.
USDCAD open 1.3893, overnight range 1.3885-1.3902, close, 1.3897, WTI 64.55, Gold 3757.59
The Canadian dollar is consolidating its losses since Monday. A string of soft domestic data highlights Canada’s economic fragility which is set to deepen under Trump’s tariff barrage. That will become evident on Friday with the release of July GDP.
The currency is also undermined by expectations of further BoC easing, even as U.S. rates are projected to fall on October 29. Adding to the momentum, broad U.S. dollar strength against the G-10 currencies is also pressuring the Loonie.
WTI is consolidating this week’s gains in a 64.27-64.93 range after gaining over 5% this week. The EIA reported U.S. crude inventories fell by 0.607 million barrels and Ukrainian drone strikes on Russian oil infrastructure raised concerns of diminished supply in the near term.
Trump is close to sealing his forced takeover of TikTok, one of China’s most successful tech firms. He originally pushed for a U.S. ban on the app, citing national security concerns, only to later recognize its role in helping his election campaign. The outcome now hands control of 80% of the company to a consortium of American investors and partners.
Asian equities ended mixed. Japan’s Topix added 0.47% and Australia’s ASX 200 gained 0.10%, while Hong Kong’s Hang Seng edged down 0.12%.
As of 7:30 am EDT, the DAX has fallen 1.04%, the CAC-40 is off 0.73%, and the FTSE 100 is down 0.40%. U.S. S&P 500 futures are down 0.30%. The dollar index is at 97.85, and the U.S. 10-year Treasury yield is steady near 4.163%.
EURUSD is consolidating near the top of its 1.1731–1.1754 range, holding earlier losses. Political uncertainty in France remains a drag as Marine Le Pen pushes for fresh elections. The Swiss National Bank SNB) left rates unchanged at 0.0% Chairman Schlegel said "the bar to go into negative rates is higher than for a normal cut; but if necessary, will be ready to use all tools"
GBPUSD traded narrowly between 1.3434 and 1.3467. The pound continues to struggle with weak growth data, stubborn inflation, and concerns over government finances. Debate among Bank of England officials highlight the divide, with Governor Bailey in favor of more cuts while Megan Greene suggested skipping one in November.
USDJPY stayed confined between 148.56 and 148.88. July’s BoJ minutes provided some support, with two members pushing for future rate hikes, although weak local data and tariff uncertainty capped gains.
AUDUSD moved within 0.6581–0.6604, supported by higher-than-expected inflation figures that reduced expectations of an RBA rate cut on September 30.
Today’s data includes: US GDP, Jobless Claims and, and Durable Goods Orders.
