- Renewed trade fears turn sentiment bearish.
- US Durable Goods Orders and weekly jobless claims on tap.
- US dollar consolidating yesterdays gains but opens on the defensive.
USDCAD: open 1.3844, overnight range 1.3840-89, close 1.3881, WTI 62.64, Gold 3376.71
The Canadian dollar is giving back yesterday’s gains on the heels of Trump’s latest tariff broadside against Canada. He sounded like he is getting ready to hit Canadian auto exports with more tariffs.
“I really don't want cars from Canada. So, when I put tariffs on Canada, they're paying 25%, but that could go up in terms of cars. When we put tariffs on, all we're doing is saying, ‘We don't want your cars, with all due respect.’ We really want to make our own cars — which is what we're doing, in record numbers.”
President Trump is taking heat on multiple fronts. Public opinion suggests confidence in his economic leadership is waning, and recent market action mirrors that sentiment. A sharp drop in equities, bonds, and the dollar forced the White House to reassess its strategy. Officials claim that more than 70 countries are lining up to make trade deals, though they rarely identify more than a dozen. China has made it clear that talks are off the table while tariffs remain.
So far, the administration’s efforts to revitalize American industry have sparked capital flight and a weaker currency. More than 140 lawsuits have been launched by state governments, advocacy groups, and businesses, casting doubt on the durability of recent market rebounds.
US equity markets found temporary support after Trump eased off aggressive rhetoric toward China and the Fed. That helped Wall Street finish higher, with Asia’s ASX and Japan’s Topix rising 0.60% and 0.32%, respectively.
Europe didn’t share the optimism. After Chinese officials denied trade discussions with the US, European indexes slipped, led by a 0.31% drop in the DAX. S&P 500 futures are off the lows but still down 0.32%. The CBOE VIX is at 28.4, and the 10-year Treasury yield holds at 4.356%. Gold (XAUUSD) rose from 3288.3 to 3330.2.
EURUSD traded in a 1.1315-1.1393 range, holding firm after German Ifo data beat forecasts for April. Business Climate, Current Assessment, and Expectations all exceeded prior readings and projections.
GBPUSD drifted in a 1.3254-1.3321 range, staying within yesterday’s band. Lackluster consumer confidence and warnings from BoE Governor Bailey about the UK’s vulnerability to global trade disruptions kept gains in check.
USDJPY traded defensively a 142.31-143.46 range, peaking in Asia before sliding steadily into the NY open. The risk-off tone from Europe dragged the pair lower. A break below 141.50 could set the stage for a move to 140.50.
AUDUSD traded sideways in a 0.6344-0.6389 range, recovering some ground on broader USD weakness. Talk of reviving trade discussions with China underpinned the Aussie, though Beijing’s resistance remains a hurdle.
