Jun 03, 2025 (Baystreet.ca via COMTEX) --
- OECD 2025 world growth forecast 2.9% vs 3.3% previously. - US trade officials hoping and praying for China to call - US dollar grinds out small gains compared to Monday's close. USDCAD: open 1.3727, overnight range 1.3709-1.3739, close 1.3716, WTI 62.54 Gold 3357.08 The Canadian dollar drifting lower overnight because of widespread but modest demand for US dollars against the major G-7 currencies. Wednesday's Bank of Canada monetary policy meeting is likely going to be a non-event. The BoC is universally expected to hold its benchmark rate by 25 bps and there isn't a press conference. WTI oil prices traded lower after reports of sharply higher global oil inventories however the risk that Iran rejects the lates US nuclear deal may limit the downside. The OECD cut its global growth forecast to 2.9% from 3.3%, pinning the blame on Trump's tariff campaign. The report flagged his tariff policy and protectionist trade barriers as factors stoking inflationary pressures. The OECD is now projecting just 1.6% growth for the US, a steep drop from the 2.8% it expected in March. Asian equity markets ended the session with mixed performances. Japan's Topix slipped 0.22%, while Australia's ASX 200 added 0.63%. Chinese indexes closed in the green, supported by reports the US would extend its tariff pause on Chinese goods until the end of August. European bourses are slightly weaker, apart from the German DAX, which is up 0.19%. Meanwhile, S&P 500 futures are down 0.38%, recovering slightly from earlier losses. Gold is trading at 3357.85, and the yield on the US 10-year Treasury is 4.415%. EURUSD traded in a 1.1402-1.1455 range and is pulling back after recent gains. Eurozone flash CPI showed headline inflation rising 1.9% in May, slightly below the 2.0% forecast, while core CPI came in at 2.3%, missing expectations of 2.5%. The weaker inflation figures cement expectations for a 25 bp rate cut at the ECB's upcoming meeting. GBPUSD ranged between 1.3505 and 1.3560 as the greenback attempts to recover. Traders are eyeing today's JOLTS job openings and tomorrow's UK Services PMI for fresh direction. USDJPY traded in a 142.38-143.27 band and eased in Europe after giving back earlier Asian gains. Comments from BOJ Governor Kazuo Ueda suggested a slower pace of bond purchases may extend into 2026, while he also noted ongoing economic recovery and steady business investment. AUDUSD bounced inside a 0.6460-0.6501 range, initially rising in Asia before reversing course after weak Chinese Caixin PMI data. The RBA minutes showed policymakers discussed a potential 50 bp rate cut which weighed on the currency pair. Today's US data includes the JOLTS Job Openings report which is expected to show a 92,000 decline.
COMTEX_466054026/2559/2025-06-03T10:12:37
