- US Markets closed for Thanksgiving
- Carney tweaks steel tariffs
- US dollar consolidating losses in quiet trading
USDCAD open: 1.4045, overnight range 1.4029-1.4050, close 1.4042, WTI 58.83, Gold 4156.25
The Canadian dollar is quiet as it consolidates this weeks gains ahead of what is certain to be a uneventful trading session due to the US holiday.
Prime Minister Mark Carney tweaked tariff levels on steel imports in a bid to lift Canadian production, although the policy details are complex. The government set tariff rate quotas in the summer so that steel brought in above a set volume would face 50 percent tariffs. Yesterday he lowered the volume threshold, tightening the measure.
WTI traded in a 58.29 to 59.96 range and was steady as markets waited for more detail on Putin’s peace plan, which the Trump administration is supporting. China issued new import quotas for independent refiners, a move expected to increase demand and offer a floor for prices.
The US dollar is on the defensive due to rising Fed rate cut odds but after yesterday’s pullback it is slightly firmer in early Toronto action. With US markets shut today and running on minimal staffing tomorrow, the next two sessions should be quiet.
Asian equity markets closed on a mixed note. Australia’s ASX 200 rose 0.12%, Japan’s Topix rose 0.39%, and Hong Kong’s Hang Seng was flat.
As of 7:15 am, the German DAX is up 0.27%, the French CAC-40 has gained 0.12%, and the FTSE 100 index is down 0.13%. The US Dollar Index (DXY) is 99.63, and the US 10-year Treasury yield is 4.015%.
EURUSD traded in a 1.1576 to 1.1614 range overnight, drifting higher in Asia before slipping in Europe after a batch of mixed sentiment data. Confidence numbers were mostly unchanged, and traders expect the pair to stay confined inside a 1.1540 to 1.1640 band until fresh catalysts arrive.
GBPUSD moved between 1.3210 and 1.3268 as yesterday’s budget headlines whipsawed the currency. The update reinforced expectations that the Bank of England could cut rates in December, leaving broader US interest rate sentiment to steer direction.
USDJPY traded in a 155.72 to 156.49 range while markets focused on the Bank of Japan’s December decision, with many analysts expecting a small hike. Political stories added colour after reports that Trump urged PM Takaichi to ease pressure on China, and Nikkei Asia noted that the ruling LDP will regain a majority as independents join its ranks.
AUDUSD drifted inside a 0.6517 to 0.6540 range as traders absorbed yesterday’s hotter inflation reading and the softer US dollar tone tied to rising expectations for a December Fed cut.
The economic calendars for Canada and the US are empty of any top tier data.
