- Gold soars above USD $4,000/ounce
- Carney/Trump meeting ends without any tariff relief.
- US dollar inching higher on global risk aversion.
USDCAD open 1.3957, overnight range 1.3946-1.3971, close, 1.3949, WTI 62.51, Gold 4049.15
The Canadian dollar isn’t showing much life and continues to seesaw within this week’s range. Political turbulence in France, Japan, and the US has given the greenback a modest safe-haven lift, while the absence of meaningful US economic data has kept traders on the sidelines.
Prime Minister Mark Carney’s trip to Washington ended with little to show. There was no tariff relief—just more empty assurances from Canada–US Trade Minister Dominic LeBlanc that both sides are “working hard” to reach a deal.
WTI oil traded between 62.08 and 62.65, with earlier support from a smaller-than-expected November production hike fading fast. Traders brushed off the latest API report showing crude inventories rising by 2.78 million barrels.
Gold (XAUUSD) has soared almost 50% since Trump’s inauguration. The President’s attacks aimed at undermining the Fed’s independence, tearing up long-standing trade agreements, alienating allies, and attempts to use the US military to silence domestic dissent have driven investors around the world to seek safety away from the US dollar.
Asian equity indices were uninspired. Japan’s Topix closed up 0.24%, Australia’s ASX 200 slipped 0.10%, and Hong Kong’s Hang Seng fell 0.48%.
As of 7:25 a.m. EDT in Europe, the French CAC-40 has gained 0.77%, the UK FTSE 100 has risen 0.70%, and the German DAX is up 0.62%. The US Dollar Index (DXY) sits at 98.83, and the US 10-year Treasury yield is 4.106%.
EURUSD fell from 1.1662 to 1.1606 before rebounding slightly to 1.1618 in New York. French political turmoil continues to weigh on the single currency. Meanwhile, German industrial production plunged 4.3% (forecast -1.3%), heightening recession fears. A break below 1.1575 opens the door to 1.1390.
GBPUSD traded between 1.3384 and 1.3433. Broader US dollar strength, risk aversion, and fallout from France’s political mess are pressuring sterling. Persistent UK budget worries add to the drag, while the EU’s plan to hike tariffs on imported steel — a key UK export — doesn’t help sentiment. However, losses may be limited as today’s FOMC minutes are expected to underscore a dovish Fed tone.
USDJPY firmed within a 151.74–153.00 band and sits near the top of the range in New York. The election of Sanae Takaichi as head of the LDP and next Prime Minister is boosting sentiment, as her fiscal stimulus plans suggest the BoJ will keep rates low.
AUDUSD drifted in a narrow 0.6557–0.6580 range, pressured by broad US dollar strength. Across the Tasman, the RBNZ surprised markets with a 50 bp rate cut to 2.5% and hinted that more easing could follow.
There are no economic releases from Canada but the minutes from the September 17 FOMC meeting are due.
