– Many European markets closed
– China/US talking trade in UK.
– US dollar trading lower in holiday thinned trading,
USDCAD: open 1.3674, overnight range 1.3670-1.3700, close 1.3699, WTI 64.71, Gold 3318.64
The Canadian dollar drifted in a quiet European session as most major European centers were closed for Whitmonday holidays.
The Canadian dollar weakened after the Canadian and US employment reports. The Canadian data was weak and supported renewed Bank of Canada easing while the US numbers were resilient which suggested the Fed would stay on hold.
Chinese and U.S. trade officials are back at the table in London following China’s decision to cut off rare-earth mineral exports, a move that pressured the U.S. into talks. Optimism around the meeting helped stabilize global risk sentiment. Beijing is pressing Washington to lift bans on semiconductor exports and restrictions on chipmaking tools, while the U.S. is trying to secure access to strategic materials critical for tech and defense manufacturing.
Stronger risk appetite lifted Asian equity indexes earlier today. Japan’s Topix rose 0.56% and Hong Kong’s Hang Seng surged 1.63%. Australian markets were closed for a holiday. European bourses are trading with a downside bias as many markets remain thin due to Whit Monday. The German Dax has lost 0.51%. U.S. equity futures are flat and the 10-year Treasury yield sits at 4.49%.
EURUSD traded in a 1.1391–1.1439 range and remains bid near the top end in thin markets due to Whit Monday holidays across much of Europe. Gains are supported by lingering post-ECB optimism and comments from ECB’s Peter Kazimir, who suggested the current easing cycle may be complete.
GBPUSD traded in a 1.3524–1.3582 band and is rebounding strongly after Friday’s drop. Sterling benefited from improved risk tone and a Chinese press release touting stronger trade prospects with the UK.
USDJPY drifted between 143.98 and 144.95 as the pair reversed post-NFP gains. A pullback in the 10-year Treasury yield, mildly upbeat Japanese GDP data for Q1 (0.0% vs. -0.2% q/q) and improved global risk appetite helped drive USDJPY lower.
AUDUSD moved within a 0.6494–0.6535 range and rallied to challenge its 2025 high. The advance was fueled by hopes for a U.S.–China trade breakthrough and broad-based U.S. dollar weakness. Market activity was subdued due to Australian markets being shut for the King’s Birthday.
There are no US or Canadian economic reports of note today.
