USD / CAD - Canadian dollar consolidates losses
- FOMC minutes unlikely to offer fresh insight.
- RBNZ cuts rates by 25 bps to 3.25%-more cuts ahead.
- US dollar opens mixed in uninspired trading.
USDCAD: open 1.3825, overnight range 1.3802-1.3839, close 1.3813, WTI 61.30, Gold 3324.23
The Canadian dollar fell yesterday then consolidated the losses overnight. The catalyst for the sell-off was stronger-than-expected U.S.
Consumer Confidence and Core Durable Goods data, which painted a more robust picture of the U.S. economy, despite tariffs. Still, it’s too soon to draw firm conclusions, as the latest figures likely reflect a spike in front-loaded imports ahead of tariff implementation — the real impact could begin to bite in the weeks ahead.
With no meaningful U.S. or Canadian data scheduled today and the FOMC minutes unlikely to offer any fresh insight, the currency is expected to stay locked in familiar ranges for now.
WTI crude is on the defensive in a 60.85- 61.60 range as traders await the outcome of today’s OPEC meeting. Markets expect the group to announce a production cut of roughly 411,000 barrels per day starting July 1.
Asian equity markets consolidated recent gains. The ASX 200 in Australia slipped 0.13%, the Hang Seng fell 0.53%, and Japan’s Topix ended flat. European benchmarks are slightly weaker as well. Germany’s DAX is off 0.32%, and the UK’s FTSE 100 is down 0.11%. S&P 500 futures are bucking the trend and are up by 0.06%. U.S. 10-year Treasury yields traded in a 4.644–4.48% range.
EURUSD traded in a 1.1296–1.1345 range, slipping modestly from yesterday’s peak. The pair remains under pressure after hitting 1.1419 in the wake of Trump’s retreat on proposed 50% EU tariffs.
GBPUSD drifted in a 1.3461-1.3523 band, holding on to recent gains. The uptrend from May 12 remains intact, supported by rising speculation that the Bank of England might proceed more cautiously with rate cuts than previously forecast.
USDJPY moved between 143.85 and 144.77 following a sharp rally on Tuesday. The pair consolidated gains in choppy overnight action, with a weak long-term Japanese bond auction largely offset by growing optimism that the upcoming G-7 summit could bring a breakthrough on tariffs between Japan and the U.S.
AUDUSD traded in a 0.6426–0.6454 range. The Aussie was mostly unchanged from Tuesday’s close after failing to build on Monday’s 2025 high. Traders are waiting for fresh direction, but today’s FOMC minutes are unlikely to provide it.
NZDUSD climbed in a 0.5924–0.5980 range following the Reserve Bank of New Zealand’s 25 bp rate cut, which lowered the OCR to 3.25%. The move was widely expected, and the currency rallied on a “buy the fact” bounce. One policymaker dissented, preferring to wait for more clarity on this year’s inflation surge. The statement left the door open for another one or two cuts.
