Aug 13, 2025 (Baystreet.ca via COMTEX) --
- Tame US CPI spurs dollar sell-off
- Oil prices slide on oversupply forecast
- US dollar under pressure across the board.
USDCAD open 1.3752, overnight range 1.3752-1.3782, close 1.3775, WTI 62.74, Gold 3365.52
The Canadian dollar slide lacked follow-through compared to the other G-10 major currencies which may be partly linked to China's latest trade retaliation against Canada. Beijing has imposed a 76% tariff on Canadian canola and has opened an anti-dumping probe into Canada's pea starch exports, a response to Canadian tariffs on Chinese EVs and steel.
Yesterday's tame US inflation data spurred Treasury Secretary Scott Bessent to call for the Fed to cut rates by 50 bps in September. That sparked a stampede into "risk-on" trades and widespread US dollar selling pressure. The Canadian dollar rose in sympathy.
WTI oil traded lower in a 62.55-63.34 range and remains under pressure on oversupply fears. The Energy Information Administration's outlook. The EIA projects Brent crude will average below $60.00 per barrel in Q4--the lowest since 2020--citing record US production and an intensifying global oil glut.
All major Asian equity markets advanced except for Australia's ASX 200, which slipped 0.60%. Japan's Topix gained 0.83%, and Hong Kong's Hang Seng jumped 2.58%. In Europe, stocks are higher on improved global risk sentiment, led by a 0.87% gain in the German Dax. The French CAC-40 is up 0.54%, and the UK FTSE 100 has edged up 0.12%. US S&P 500 futures are ahead 0.20% as of 7:30 am..
EURUSD traded in a 1.1669-1.1730 range and is sitting at the upper end in New York. Dollar weakness driven by talk of a 50 bp Fed rate cut in September, coupled with Trump's musings about suing Powell over renovation cost overruns, has weighed on the greenback. German CPI matched forecasts, while wholesale prices declined 0.1% m/m versus an expected 0.2% drop.
GBPUSD climbed from 1.3493 to 1.3574, where it is holding in New York. Gains reflect residual support from a benign UK jobs report and broad-based US dollar selling after Bessent's aggressive rate-cut comments. Tuesday's US CPI report matched expectations but reinforced the dovish tone, adding to the political drama's pressure on the greenback.
USDJPY moved within a 147.18-148.17 band, trading on the back foot as speculation over deeper Fed cuts, falling Treasury yields, and improving global risk sentiment pressured the pair. Traders largely overlooked the 2.6% y/y rise in PPI, which was slightly above forecast (2.5%) but down from June's 2.9%.
AUDUSD traded in a 0.6516-0.6558 range and is sitting at the highs, buoyed by chatter of a 50 bp Fed cut in September, firmer global risk sentiment, and rising stock markets. Gains were also helped by Australia's Q2 wage price index rising 3.4% y/y, a touch above the 3.3% forecast.
The US and Canadian economic calendars are empty.
COMTEX_468015167/2559/2025-08-13T12:12:38
