Jul 17, 2025 (Baystreet.ca via COMTEX) --
- Lingering turmoil from Powell and tariff drama.
- US Retails Sales data expected to rise 0.1% m/m.
- US dollar trading with a bid on firmer Treasury yields.
USDCAD open 1.3750 overnight range 1.3684-1.3769, close 1.3682, WTI 66.55, Gold 3325.69
Yesterday, the Canadian dollar sank along with the other G-10 major currencies when Donald Trump floated the idea of firing Fed Chair Jerome Powell--a move widely seen as an attempt to shift headlines away from criticism over his failure to release the Epstein files.
The drama fizzled after a sharp selloff in bonds and equities prompted Trump to say he had no plans to fire Powell. Even so, the market remains wary, and with the US 10-year yield hovering near the upper end of its recent range, the greenback remains well supported against the loonie.
Prime Minister Mark Carney tried to set a more measured tone on the trade front. He cautioned that any eventual agreement with the US will likely involve tariffs. He also signaled concessions may be coming, including reduced quotas for softwood lumber exports and a clampdown on steel shipments.
WTI oil prices stayed within a tight 66.30-66.90 range and found modest support from a larger-than-expected 3.85 million barrel drop in US crude inventories reported by the EIA. Further reinforcement came from last week's IEA report, which suggested that rising output wasn't translating into a buildup in global stockpiles.
Asian equity markets traded firmer. Australia's ASX 200 gained 0.90%, and Japan's Topix added 0.72%, while Hong Kong's Hang Seng ended the day unchanged.
European markets followed suit. The Germany DAX is up 0.75% while the French CAC 40 has risen by 0.86%. London's FTSE 100 rose 0.46% and S&P 500 futures are flat. earnings release. The 10-year Treasury yield is at 4.48%, while gold traded at $3328.70 as of 6:30 am EDT.
EURUSD traded in a 1.1643-1.1574 range, sliding to the low before bouncing slightly to 1.1589 in New York. The downtrend continues as firmer US yields, French political drama, and EU-US trade friction keep the euro under pressure. Eurozone inflation data met expectations, with June CPI up 2.0% and core at 2.3%. Germany rejected the EU's proposed EUR2 trillion budget.
GBPUSD moved within a 1.3375-1.3432 band overnight and was mid-range in New York. UK labour data showed a decline in employment and an uptick in the jobless rate to 4.7%, slightly above expectations. Analysts at ING noted that the results could reduce pressure on the Bank of England to rush into easing.
USDJPY traded in a 146.94-148.83 range, with the pair dropping sharply yesterday before recovering overnight. Safe-haven yen demand pushed the pair lower on Powell firing fears, but higher US yields supported a bounce back toward the top of the range.
AUDUSD fell in a 0.6534-0.6462 range and remains near the low in early New York trading. The Australian economy lost 38,200 jobs and the unemployment rate rose to 4.2%, missing forecasts. Markets responded by raising the odds of a rate cut from the RBA next month.
COMTEX_467402100/2559/2025-07-17T13:42:42
