The CAD is marginally weaker this morning versus most major currencies. The single economic release was the June Trade Balance coming in at +0.1B versus the expected -0.3B contraction. However, this gain was due to imports falling less than exports and not positive overall gains in trade. With President Trump enacting more tariffs against China, North America trade uncertainty is dominating as markets brace for potential surprises regarding NAFTA/USMCA progress.
The USD is broadly higher as markets digest the FOMC interest rate cut earlier in the week and new US tariffs on China. US data was also positive with non-farm employment change in line at 164k and hourly earnings up 0.3%. The overall unemployment rate moved from 3.6% to 3.7% as a result of a higher labor force participation rate. Global markets are awaiting a speech by Trump about trade with the EU later in the morning.
The Euro is trading sideways today. Data was mixed with overall Eurozone retail sales beating expectations (1.1% versus 0.3%) and overall producer price index missing (-0.6% versus -0.4%). Euro markets await any headline risk from Trump’s speech.
Equities are down this morning: the Dow down 1.02%, the S&P down 1.14%, NASDAQ down 1.59% and the TSX down 0.84%. Crude Oil is up 3.10% this morning (55.62) and Gold is up 1.74% ($1,449.00).