Aug 11, 2025 (Baystreet.ca via COMTEX) --
- Weak employment report continues to pressure Loonie
- China tariffs go in effect Tuesday-unless there is another extension.
- US dollar opens mixed but little changed from Friday.
USDCAD open 1.3775, overnight range 1.3745-1.3779, close 1.3759, WTI 63.84, Gold 3353.52
The Canadian dollar is starting the week on the defensive although a lack of actionable data ensured a quiet overnight session.
Statistics Canada reported a loss of 40,800 jobs in July. There is no denying that it is a weak report but even so, the BoC will be reluctant to reduce rates unless inflation drops sharply.
WTI oil is trading defensively in a 63.02-64.00 range due to hopes of Trump and Putin negotiating a ceasefire, which would lead to oil sanctions being removed. In addition, OPEC's latest production increase for September is weighing on prices.
Goldman Sachs economists could be Trump's next target. They warned that US companies won't absorb tariffs indefinitely and will pass those costs to consumers, projecting Core CPI at 3.2% by year-end.
Asian equity markets ended higher, with Australia's ASX 200 adding 0.43% and Hong Kong's Hang Seng up 0.10%, while Japan was closed for Mountain Day. Europe is mixed: the UK's FTSE 100 is ahead 0.25%, but the German Dax and French CAC-40 are off 0.20%. S&P 500 futures are up 0.08%. The US dollar index sits at 98.28, and gold has dropped to 3362.25 from 3400.03 as the White House works to clarify its gold tariff stance.
EURUSD traded in a 1.1639-1.1676 range, supported by comments from Fed Governor Michele Bowman reaffirming her view for three rate cuts this year and by hopes of a Ukraine-Russia ceasefire.
GBPUSD stayed within a 1.3436-1.3476 band, edging higher on lingering support from last week's mildly hawkish rate cut. Tomorrow's UK employment data is the next focal point.
USDJPY moved between 147.35 and 147.79, with gains capped by soft US Treasury yields in thin trading due to Japan's holiday closure.
AUDUSD traded between 0.6514 and 0.6529 in quiet dealings ahead of the RBA's meeting, where markets expect a 25 bp rate cut to 3.60%.
The US and Canadian economic calendars are empty today.
COMTEX_467966908/2559/2025-08-11T12:12:31
