- Trump Gives EU reprieve on 50% tariff—until July 9
- Us and UK holidays ensure quiet Monday
- US dollar decline resumes
USDCAD: open 1.3720, overnight range 1.3687-1.3740 close 1.3735, WTI 61.59, Gold 3329.37
The Canadian dollar is on a tear. Prices ripped through resistance like a hot knife through butter and are now at levels last seen in early October 2024. And the rally is occurring despite the ugly economic outlook that warns Canada may already be in a recession thanks to Trump’s tariffs. The Canadian dollar rally was exacerbated by recent high inflation readins that suggested the BoC would leave rates unchanged at the June meeting.
Trump continues to roil markets. First, he fired off a tweet recounting a call with EU President Ursula von der Leyen, praising her “respectful” tone as she asked for a delay in tariffs from June 1 to July 9 saying,“It was my privilege to do so.” Then he got mad at Russian President Putin after Russia launched its biggest attack of the war on Kyiv , calling Putin “Crazy.”
However, it was the tariff delay which ignited the US dollar sell-off and fueled the Canadian dollar rally in the process.
Asia equities closed on a mixed note. Japan’s Topix added 0.60%, while Australia’s ASX 200 flatlined. In Europe, markets are firmer as Trump’s tariff delay helped ease nerves. The DAX is up 1.61%, the CAC 40 added 1.09%, and the FTSE dipped 0.24%. S&P 500 futures climbed 1.21%, and 10-year Treasury yields edged to 4.544%.
EURUSD traded in a 1.1363–1.1419 range, surging early in Asia before retracing much of the move in Europe. The pop came after Trump pushed back the EU’s 50% tariff deadline by over a month, giving the euro temporary tailwinds.
GBPUSD ranged between 1.3414 and 1.3502, extending its two-week winning streak. The pair is drawing support from generalized US dollar weakness and improved trade sentiment. UK officials were smug about their “special relationship” insulating them from Trump’s wrath—until his latest complaint about North Sea drilling taxes. That’ll sting later. Just not today.
USDJPY moved between 142.23 and 143.08, weakening slightly on fresh US dollar selling. Hopes for a US-Japan tariff resolution at the upcoming G-7 gathering are helping to cap losses, though the greenback remains on the defensive.
AUDUSD traded in a 0.6486–0.6538 band, hitting a new 2025 peak before easing back toward mid-range. The move reflects sustained bearish US dollar sentiment and renewed hopes for a breakthrough in US-China tariff talks.
US markets are closed and there are no Canadian economic reports today
