- Trump delays tariffs on Chinese electronic imports.
- Global equity indexes surge.
- US dollar consolidating losses-AUD outperforms
USDCAD: open 1.3848, overnight range 1.3829-1.3885 close 1.3865, WTI 2.08, Gold 3224.12
The Canadian dollar added to last week’s gains in Asian before the rally ran out of steam. The move was driven by external factors and the Canadian dollar just went along for the ride. Traders are looking ahead to Tuesday’s inflation report and then the Bank of Canada monetary policy decision on Wednesday.
The BoC is expected to cut its benchmark rate to 2.50% from 2.75% but for some economists it is not a sure thing. They worry that the uncertainty around tariffs and the Canadian election may encourage policymakers to stand pat.
Trump's tariff chaos took another turn late Friday when he appeared to ease up on the punishing 145% levy on Chinese electronics. The shift came after a tidal wave of backlash from tech firms and shoppers bracing for price spikes. By Sunday night, Trump was on TruthSocial, insisting that “NOBODY is getting off the hook” and claiming the media ignored his decision to keep the 20% fentanyl tariff intact. He added that the tariff strategy hadn’t softened—it just moved to a “different bucket.”
Markets, however, didn’t bother with the fine print. Global equity traders either believed the worst was over or simply saw a good window to cash in. Stocks surged out of the gate. Australia's ASX 200 rose 1.34%, Japan's Topix gained 0.86%, and even the Hang Seng clawed back 2.40%.
Europe followed suit. The German DAX jumped 2.25% and the French CAC 40 climbed 1.93%. S&P 500 futures rose 1.16%.
EURUSD traded in a 1.1318–1.1407 range and extended gains to 1.1425 during the early New York session. Momentum is strong, driven by aggressive US dollar selling as investors double down on the “sell America” narrative. The technical picture is bullish while prices are above 1.1270.
GBPUSD ranged between 1.3064 and 1.3192 and is at its session peak in NY due to improved risk sentiment. Focus now shifts to Tuesday’s UK employment report and Wednesday’s inflation data.
USDJPY traded sideways in a 142.23–144.07 band. The improved risk backdrop along with steady US 10-year yields helped cushion the downside. February’s industrial production posted a 2.3% rise, slightly below the 2.5% forecast and previous reading.
AUDUSD was the best performing G-10 currency and climbed from 0.6279–0.6343. The rally was due to Trump backtracking on Chinese electronics tariffs.
There are no US or Canadian data releases of note today.
