- Tech rally lifts risk sentiment
- Mixed to soft US inflation data leaves greenback on the defensive
- USD trading defensively against the majors.
USDCAD open: 1.4016, overnight range 1.4003-1.4027, close 1.4013, WTI 83.83, Gold 4,054.83
The Canadian dollar as it awaits May's Canadian GDP print, with broad US dollar softness offsetting an overnight pullback in crude.
The Canadian economy is expected to have cooled to 0.2% from April's 0.5% pace, though the number carries less weight because the data is from before Trump's latest round of forced-labour tariffs muddying the outlook.
WTI traded in an 81.21-84.90 range and sits near the top of that band heading into the New York session, with prices likely to stay elevated through the weekend.
The US tech stock rally, combined with the BoJ's yen intervention, a softer US dollar index, mixed-to-cool US inflation readings and the ongoing FOMC hangover, gave global risk appetite a broad lift overnight.
Asian markets closed in positive territory across the board. Japan's Topix climbed 1.22%, Hong Kong's Hang Seng edged up 0.10% and Australia's ASX 200 added 0.10%.
As of 7:30 am, the French CAC-40 is up 0.82%, the German Dax has gained 0.55% and the UK FTSE 100 is up 0.29%. S&P 500 futures point to a 0.41% higher open, the 10-year Treasury yield sits at 4.686%, the DXY is at 100.27 and gold is trading at 4,054.56.
EURUSD is trading in a 1.1503-1.1532 range after extending its post-FOMC advance yesterday. Eurozone July inflation printed at 0.2% versus -0.1% in June, with the annual rate at 2.9%, matching forecasts, while German unemployment ticked up to 6.4% against a 6.3% estimate. None of it moved the needle much, since a September ECB hike is already baked into prices.
GBPUSD traded choppily in a1.3436-1.3472 range overnight that saw both the low and the high print during Asian hours. Broad US dollar softness is offering some support, but the upside remains capped by fading expectations for a September BoE hike.
USDJPY bounced in 158.55-160.88 range as it recovers part of Thursday's intervention-driven plunge. The BoJ left rates unchanged at 1.00% as widely expected although board member Hajime Takata dissented. He wanted a 25 bp hike. Governor Kazuo Ueda cautioned that officials need to watch upside inflation risks more closely.
AUDUSD is steady in a 0.7020-0.7044 band, having preserved most of Thursday's gains through a choppy overnight stretch driven by broad greenback softness and spillover from Japan's yen intervention.
Today's US calendar includes the Employment Cost Index (forecast 0.8%, prior 0.9%), Chicago PMI (forecast 54 versus 54.4 previously) and Michigan Consumer Sentiment.
Canadian markets are closed Monday.
