Loonie climbs after Carney's remarks
The Canadian dollar rose against most major rivals following remarks by PM Carney in a press conference with US President Trump.
Amid continuous concerns about the trade war, Carney asserted that Canada is not and will never be for sale during a meeting with Trump, who commented moments earlier that the US-Canada borders are artificial and hinted once again at joining Canada to the US.
Trump said that he won’t discuss the US acquisition of Canada with Carney, but said there would be “great benefits” to Canada if such a “wonderful marriage” occurred between the two countries.
Trump told reporters that as a real estate developer, getting rid of the “artificial line” and joining the two countries would be “beautiful”.
However, Trump said this disagreement won’t impact their trade negotiations, also he asserted he won’t lift the tariffs on Canadian products.
On trading, the CAD/USD rose 0.4% as of 20:56 GMT to 0.7262.
Aussie
The Australian dollar rose 0.5% against the greenback to 0.6499.
US Dollar
The dollar index fell 0.6% as of 20:22 GMT to 99.2, with a session-high at 100.1, and a low at 99.2.
The Federal Reserve’s policy meeting starts today with the central bank expected to hold interest rates unchanged despite Trump’s calls for a cut.
US stock indices fall ahead of Fed's meeting
US stock indices fell on Tuesday as markets continue to assess the latest developments in the trade war while waiting for Trump’s policy meeting.
US President Donald Trump is scheduled to speak to Canadian Prime Minister Mark Carney today and commence negotiations to calm tensions.
The Federal Reserve’s policy meeting starts today with the central bank expected to hold interest rates unchanged despite Trump’s calls for a cut.
On trading, Dow Jones fell 0.3%, or 37 points as of 15:17 GMT to 41082 points, while S&P 500 fell 0.4%, or 21 points to 5629 points, as NASDAQ shed 0.6%, or 103 points to 17741 points.
US dollar under pressure before Fed's meeting
The US dollar fell in European trade on Tuesday against a basket of major rivals, extending losses for the third straight session amid renewed concerns about a US recession due to President Trump’s tariffs.
Later today and tomorrow, the Federal Reserve’s policy meeting is expected to provide clues on the path ahead for US interest rates.
The Index
The dollar index fell 0.35% today to 99.50, with a session-high at 100.10.
On Monday, the index lost 0.25%, the second drop in a row on profit-taking away from a three-week high at 100.38.
Trump’s Tariffs
On Sunday, Trump announced a 100% tariff on movies made abroad, but didn’t reveal the mechanism of collecting the fees, and on Monday, he announced plans to impose tariffs on pharmaceuticals in the next two weeks.
The Fed
Today, the Federal Reserve will convene and discuss monetary policies, expected to hold interest rates unchanged.
The Fed’s monetary statement and Chair Powell’s subsequent press conference will likely provide clues on the path ahead for policies.
US President Donald Trump continued to pressure Powell to cut interest rates, however he said won’t fire him before the end of term in May 2026.
According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in May stood at just 8%.
The odds of such a cut in June stood at a healthier 65%.
Goldman Sachs said in a memo that Fed officials would like more evidence from the labor market and other sectors before deciding to cut interest rates, with the bank expecting three 0.25% rate cuts in July, September, and October.
Gold reaches two-week high before Fed's meeting
Gold prices rose in European trade on Tuesday on track for the third straight profit in a row, hitting a two-week high and about to trade above $3400 once more as the dollar declines against major rivals.
Later today and tomorrow, an important Federal Reserve’s policy meeting is expected to provide clues on the path ahead for US interest rates.
Prices
Gold prices rose 1.6% today to $3387 an ounce, with April 22 highs at $3334.
On Monday, gold rose 2.9%, the second profit in a row, and the largest since April 21 on strong haven demand.
The Dollar
The dollar index fell 0.1% on Tuesday on track for the third loss in a row against a basket of major rivals.
It comes amid profit-taking away from three-week highs while traders shun new positions before more developments in US-China trade talks.
The Fed
Today, the Federal Reserve will convene and discuss monetary policies, expected to hold interest rates unchanged.
The Fed’s monetary statement and Chair Powell’s subsequent press conference will likely provide clues on the path ahead for policies.
US President Donald Trump continued to pressure Powell to cut interest rates, however he said won’t fire him before the end of term in May 2026.
According to the Fedwatch tool, the odds of a Fed 0.25% rate cut in May stood at just 8%.
The odds of such a cut in June stood at a healthier 65%.
Goldman Sachs said in a memo that Fed officials would like more evidence from the labor market and other sectors before deciding to cut interest rates, with the bank expecting three 0.25% rate cuts in July, September, and October.
SPDR
Gold holdings at the SPDR Gold Trust fell 4.87 tons yesterday to a total of 939.39 tons, the lowest since April 9.