- Trump taunting Canadians
- US sanctions on Iran all bun no burger
- US opens ticks higher to start the day
USDCAD open: 1.3833, overnight range 1.3783-1.3844, close 1.3764, WTI 85.10, Gold 4,648.29
The Canadian dollar is suffering from the US and Canada trade war which has already deteriorated from a diplomatic discourse to school yard taunts. Yesterday Ontario Premier Doug Ford told Trump to “Kiss my Ass.” Today Trump tweeted “The United States is giving serious consideration to changing the name of Lake Ontario to Lake America in that we don’t expect to doing much business with Ontario any longer. Thank you for your attention to this matter! President DONALD J. TRUMP”
WTI oil shrugged off the latest US attack on Irian, dubbed Operation Economic Outcast and is trading in a 82.05-82.84 range, just above the overnight low.
Treasury Secretary Scott Bessent took the stage yesterday to launch what he is calling Operation Economic Outcast. The goal is to strangle Iran's IRGC by walling the country off from global commerce, and threatening sanctions on any country who disobeys the US directive.
Beijing's answer was a blunt refusal, while Brussels has said next to nothing.
Equity trading in Asia produced a mostly positive session. The Topix closed 0.50% higher in Tokyo, Sydney's ASX 200 put on 0.68%, and the Hang Seng ended unchanged in Hong Kong.
At 7:00 am, green screens dominate across Europe. The DAX has jumped 0.86% in Frankfurt, the CAC-40 is 0.43% firmer in Paris, and London's FTSE 100 shows a 0.23% gain. S&P 500 futures point 0.42% higher, the US 10-year Treasury yields 4.669%, and gold fetches $4,639.12.
EURUSD was confined to a 1.1651-1.1674 band. The pair lacked direction with German data offsetting negative risk sentiment. August's Ifo business climate survey printed 88.8 versus 86.7 prior, with the current condition’s rising to 88.5 from 86.5.
GBPUSD spent the session inside 1.3622-1.3656 with no real conviction. Negative risk sentiment from Iranian sanction weighed on sterling, but the currency found a floor thanks to the recent run of upbeat UK releases.
USDJPY chopped in a 159.04-159.49 range. Asian gains became European losses as price action tracked Treasury yields and crude.
AUDUSD remained rangebound in a 0.7138-0.7160 band. Minutes from the RBA gave the Aussie a lift by showing the board still worried about inflation running hot, to the point of debating another hike, though soft domestic labour figures and a defensive US dollar tone are blunting the advance.
