USDCAD: open 1.3811, overnight range 1.3803-1.3858, close 1.3856, WTI 58.86, Gold 3265.58
The Canadian dollar is trading sideways and awaiting direction from today’s US jobs data. The currency received a small dose of support yesterday after Trump took note of GM’s forecast of a $5 billion hit to revenue from tariffs and he backed off plans to impose tariffs on auto parts.
WTI climbed from a low of 56.45 to 59.86 overnight due to caution ahead of the NFP report and pre-weekend profit-taking. before easing back to 58.68 in New York. OPEC ministers’ meet on May 5 where production levels will be discussed.
China remains on holiday for Labour Day, the Ministry of Commerce appeared to be working. They said they were reviewing the possibility of re-engaging with the US, claiming several senior American officials had signaled a desire to restart talks.
Asian equity markets moved higher, encouraged by signs of easing tariff tensions. Australia’s ASX 200 rose 1.13%, and Japan’s Topix gained 0.31%. European indices climbed as well led by a 1.53% rise in the German DAX. S&P 500 futures are up 0.37%, and the US 10-year Treasury yield is unchanged at 4.21%.
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The focus now shifts to the US employment report following yesterday’s mixed ISM PMI data. Nonfarm payrolls are expected to show a gain of just 130,000 after last month’s 228,000 increase.
EURUSD traded in a 1.1275-1.1355 range and climbed steadily through the Asian and European sessions, underpinned by improved regional data and positive trade developments. Eurozone Manufacturing PMI ticked up to 48.4 from 48.0 last month, the fastest pace in nearly three years.
GBPUSD drifted in a 1.3274-1.3322 band and is modestly firmer, though still well below this week’s high of 1.3444. Attention is turning to next Thursday’s Bank of England meeting, where a 25 bp rate cut is expected.
USDJPY ranged between 144.44 and 145.92, rising toward 146.00 before retreating. Finance Minister Katsunobo Kato hinted Japan could use its $1 trillion in US Treasury holdings as a bargaining chip in trade talks, stating “we obviously need to put all cards on the table in negotiations. It could be among such cards.”
AUDUSD traded in a 0.6375-0.6445 range and shrugged off weaker-than-expected March retail sales data and climbed on renewed optimism that US-China trade talks could resume.
There are no Canadian economic reports today.
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