U.S. stocks slumped and Treasuries rallied after President Donald Trump said he’ll answer to new Chinese tariffs and blasted Federal Reserve Chairman Jerome Powell. The dollar fell.
Equities started the day lower after China threatened to impose additional tariffs on $75 billion of American goods. The S&P 500 Index briefly rebounded as Powell’s remarks bolstered speculation the central bank will cut rates next month. Gains fizzled out quickly after Trump’s tweet on trade, with technology companies leading a sell-off in stocks. Ten-year yields halted a two-day advance. The greenback dropped as the U.S. president said that “we have a very strong dollar and a very weak Fed.” Oil dropped and gold surged.
Canada’s retail sales were unchanged in June following a downward revised 0.2 percent decline in May. The flat reading managed to beat expectations calling for a marginal decline and left annual growth unchanged at 1.0 percent. Monthly sales were firmer in volume terms, rising 0.4 percent, though year-on-year volume growth here was flat.
The Canadian dollar is relatively unchanged to the USD, the euro gained against the USD on Powell’s comments, and sterling held its own, while Brexit talks continue.
Currently Close Range
USDCAD 1.3323 1.3303 1.3277-1.3339
EURCAD 1.4838 1.4740 1.4720-1.4851
GBPCAD 1.6318 1.6297 1.6237-1.6358