- French government falls-Euro yawns.
- US nonfarm payrolls revisions data due today.
- US dollar continues to slide, and CAD continues to underperform
USDCAD open 1.3802, overnight range 1.3794-1.3813, close, 1.3803, WTI 62.73, Gold 3654.08
The Canadian dollar is struggling to make any gains despite ongoing US dollar selling pressure. Friday’s poor American labour report has sparked some chatter that the Fed could cut rates by 50 bps on September 17, although the odds of that happening are only around 12%.
The Canadian economy has issues of its own and they include slowing growth, rising unemployment and trade feuds with two important partners, China and the US.
WTI oil prices traded lower in a 62.37-63.16 range due to fears of an oversupply after Saudia Arabia trimmed prices for its Asian clients.
The US employment picture will grab the spotlight again today when the nonfarm payrolls benchmark revisions are published at 10:00 am. Forecasts suggest the United States may have lost between 400,000 and 1,000,000 jobs in the 12 months ending in March 2025. That shortfall won’t fall on Trump’s shoulders—he hadn’t been in office long enough to be blamed.
Asian markets closed broadly lower with the exception of Hong Kong’s Hang Seng, which climbed 1.9% on the back of strong performances in tech and property stocks. Australia’s ASX 200 shed 0.52% and Japan’s Topix slipped 0.51%. Early European trading shows the CAC 40 up 0.39% and the FTSE 100 ahead 0.21%, while Germany’s DAX is off 0.37%. In North America, S&P 500 futures are flat, the US Dollar Index sits at 97.37, gold trades at $3,653.49, and the US 10-year Treasury yield is 4.061%.
EURUSD consolidated yesterday’s gains inside a 1.1745–1.1780 band. Selling pressure following the fall of the French government gave way to demand for the single currency as US yields fell. Political uncertainty in Paris will remain a weight, but intraday charts stay positive above 1.1740.
GBPUSD moved between 1.3543 and 1.3590, supported by the diverging policy outlooks of the Federal Reserve and the Bank of England. Near-term signals are bullish while above 1.3530, with a push toward double-top resistance at 1.3630 possible.
USDJPY tumbled from 147.56 to 146.31, where it trades in early New York. The drop reflects collapsing Treasury yields and the increased likelihood that Japan’s political shakeup will postpone any BoJ rate increases. US 10-year yields have fallen from 4.30% on September 3 to 4.063% today.
AUDUSD extended its recent rally and is trading at the top of its 0.6583–0.6620 range in New York. A softer US dollar and slightly improved readings on business conditions and confidence supported the advance.
There are no Canadian and US economic reports (except nonfarm revisions) on tap
