President Trump sent out two tweets threatening to impose further tariffs on $200 Billion in Chinese goods and tariffs on goods that were tariff free. Initially the Dow fell 470 points but has come back a bit to being down 228 points, markets appear to be calming down. Analysts say it is in the interest of both countries to reach a deal, with China’s economy just beginning to steady after a campaign of fiscal and monetary stimulus. The U.S. economy has also shown recent signs of improvement, and April’s super strong jobs report gives more credence to the idea that the economy is not near recession, as was believed by many investors earlier in the year. There are no material stats due out of Canada.While there are no stats, Bank of Canada Governor Poloz is due to speak later on in the day. Any chatter on policy will influence. There’s unlikely to be anything particularly hawkish to provide support for the Loonie, however. As always, risk sentiment will continue to play a hand. An early pullback came off the back of Trump’s latest tweets and there could be more losses to come should China formally cancel talks .
Currently Close Range
USDCAD 1.3450 1.3420 1.3428-1.3494
EURCAD 1,5054 1.5030 1.4987-1.5101
GBPCAD 1.7605 1.7682 1.7594-1.7729