Jun 19, 2025 (Baystreet.ca via COMTEX) --
- US markets closed for Juneteenth
- Bank of England leaves rates unchanged, Swiss National Bank cuts.
- US dollar opens with gains.
USDCAD: open 1.3715, overnight range 1.3686-1.3730, close 1.3696, WTI 73.64, Gold 3369.51
The Canadian dollar drifted lower overnight as bearish momentum carried over from yesterday's post-FOMC move. Iran/Israel war jitters and the Fed's tone added fuel to the move.
BoC Governor Tiff Macklem cautioned that Canadian inflation could accelerate if U.S. tariffs remain in place beyond the 30-day window outlined by PM Carney.
For now, the Canadian dollar direction is being steered by global risk sentiment, central bank divergence, and tariff speculation.
Friday's Canadian releases (retail sales, industrial product, raw materials) are unlikely to move the needle.
WTI oil traded in a 72.17-74.03 band, opening near the low as fears of an American strike on Iranian nuclear facilities failed to materialize. The American Petroleum Institute reported a sharp 10.133-million-barrel draw in crude inventories last week.
European indices are underwater. The FTSE 100 is off 0.24%, France's CAC 40 shed 0.64%, and Germany's DAX slipped 0.24%. S&P 500 futures point lower, down 0.34%. Gold (XAUUSD) rose from 3347.73 to 3371.34.
EURUSD traded cautiously in a 1.1446-1.1489 range as markets digested hawkish Fed signals, elevated geopolitical risks, and climbing oil prices. The SNB's rate cut came as expected, while Norway's Norges Bank surprised by trimming rates to 4.25% and flagging more cuts ahead.
GBPUSD hovered between 1.3393 and 1.3440, then slipped after the Bank of England held rates steady at 4.25% in a split vote. Six MPC members backed the hold, while three dissented in favor of a cut.
USDJPY moved steadily higher from 144.74 to 145.54, bolstered by rising U.S. yields and a report that Japan's Ministry of Finance will scale back issuance of 20-, 30-, and 40-year JGBs. The anticipated supply reduction is seen as supportive for USDJPY via yield differentials.
AUDUSD fell from 0.6512 to 0.6460 following the FOMC and a softer-than-expected Aussie jobs report. While 2,500 jobs were lost, all were part-time. The market reaction may be excessive, though it bolsters expectations that the RBA could cut rates in August.
COMTEX_466495097/2559/2025-06-19T09:42:34
