USD

Price action in financial markets looks remarkably muted this morning as shell-shocked investors stay sidelined against a quiet data backdrop. The dollar is inching higher amid thin trading volumes, most major pairs are within 0.2 percentage points of yesterday’s close, the benchmark ten-year Treasury yield is less than a basis point higher, and North American equity markets are setting up for a modestly-positive open. Currency traders yawned when Donald Trump issued a new round of tariff threats last night, this time promising to hit automotive imports, pharmaceuticals, and semiconductors with taxes “in the neighbourhood” of 25 percent. “It’ll go very...

The dollar is advancing incrementally against its major rivals this morning after suffering extensive losses in the last two weeks on a softening in US economic data and a reversal in bets on Donald Trump’s trade plans. A disappointing payrolls report, several noisy but ultimately calming inflation prints, evidence of a slowing in consumer spending, and a less-aggressive-than-feared reciprocal tariff announcement on Thursday helped bring yields down in the last week and a half, and—despite a small advance overnight—the greenback is now down roughly three quarters of a percentage point in trade-weighted terms. Canadian headline and core inflation measures accelerated...