- Copper prices soar after Trump hikes tariffs by 50%.
- FOMC minutes confirmed Powell’s cautious stance.
- US dollar opens modestly lower in quiet overnight session
USDCAD open 1.3678, overnight range 1.3664-1.3696, close 1.3686, WTI 68.08, Gold 3326.82
The Canadian dollar was largely ignored in a somewhat quiet FX session. Traders are becoming inured to Trump’s tariff announcements mainly because the deadlines keep moving. Canadian dollar price action is tied to broad US dollar sentiment with domestic influences sidelined.
WTI oil prices chopped in a tight 67.89-68.57 range with gains hampered by yesterday’s Energy Information Administration (EIA) data showing US crude stocks increased by 7.0 million barrels last week.
The FOMC minutes largely echoed what Jerome Powell has already made clear—Fed officials are in no rush and prefer to observe how the tariff situation plays out before making any monetary policy adjustments.
Asian markets ended the session with mixed results after Trump issued his second wave of tariff threats. Australia’s ASX200 climbed 0.59%, Hong Kong’s Hang Seng advanced 0.57%, while Japan’s Topix declined by 0.56%. European equities were more upbeat despite the trade news. The UK FTSE 100 surged 1.11%, France’s CAC 40 added 0.72%, and Germany’s DAX dipped 0.16%. S&P 500 futures are trading 0.15% lower, while the US 10-year Treasury yield is holding at 3.353%. Spot gold is priced at $3,323.23 as of 6:10 a.m. EDT.
EURUSD traded in a 1.1717–1.1750 band, supported by speculation that the EU and US may forge a new trade framework. EU negotiators are pushing for lower auto tariffs and appear open to cutting their own duties and accepting quotas on US vehicle imports. In political news, European Commission President Ursula von der Leyen survived a no-confidence vote, securing 360 votes against 175, with 18 abstentions.
GBPUSD moved sideways in a 1.3585–1.3620 range, benefiting slightly from another record-setting session in the FTSE 100. Gains in UK mining stocks—driven by Trump's announcement of a 50% tariff on copper—helped offset broader trade war concerns, which British investors appear to be shrugging off.
USDJPY rose modestly within a 145.76–146.47 corridor. Japan’s producer price index climbed 2.9% y/y in June, in line with forecasts and largely ignored by FX traders. The currency pair remains caught between safe-haven demand for the yen and speculation that the Bank of Japan will delay further policy tightening.
AUDUSD climbed from 0.6530 to 0.6565, buoyed by optimism following the US copper tariff announcement.
US weekly jobless claims are expected to rise 2,000 to 235,000, which should not have any bearing on markets
