Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.4110-1.4360
Euro 1.6040-1.6290
Sterling 1.8630-1.8880
WTI Oil (opening level) $69.55
The CAD/USD is opening at 1.4236 ( 0.7024 )
Gold slumped below USD 4,000 to a seven-month low, pressured by a resurgent dollar and concerns that higher funding costs may yet lie ahead. The technical breakdown and a 29% correction from January's record high continue to weigh on sentiment, leaving the near-term outlook challenged despite steady central bank demand providing an important source of underlying support. At the same time, a continued decline in energy prices and lower bond yields may eventually ease pressure on the Federal Reserve to raise rates.
Headlines
· US-Iran peace efforts have improved the oil supply outlook. Confidence in a lasting deal has increased tanker traffic through the Strait of Hormuz with signals on, and buyers now face more crude offers from the Middle East and West Africa. A temporary US waiver for already-loaded Iranian oil and continued releases from US strategic reserves will further boost supply, and Brent’s prompt spread shifted into bearish contango on Wednesday for the first time since the conflict began.
· US new single-family home sales fell 7.3% in May 2026 to an annualized 580,000, a four-month low and well below forecasts. Higher mortgage rates weighed on demand, with sharp declines in the West and South and gains in the Northeast and Midwest. Inventory rose to 10.3 months of supply, the highest since 2009, while the median sales price increased slightly to $424,900.
· Trump said Iran has told the US it is not charging tolls, insurance, or other fees on ships transiting the Strait of Hormuz. He warned that if this proves false, negotiations will end immediately and stressed that no money has been given to Iran or released from its funds.
· The Australian economy added 40,300 jobs in May, reversing the previous month’s losses, while the jobless rate dipped to 4.4%, validation of the Reserve Bank’s view the labor market remains tight. Separate data released by the ABS showed household spending jumped 1.3% in May from a month before and climbed 5.5% from a year earlier.
Key Points
· Equities: US and Europe stayed mixed, while Asia rebounded sharply as Micron revived the memory-chip trade.
· Volatility: Equities recovering on Micron's beat, VIX near 19 with VIX9D close to spot, pricing genuine near-term risk into PCE
· Digital Assets: Crypto stabilising after a multi-week slide, IBIT put flow signals holders protecting rather than exiting
· Commodities: Gold, silver and copper extend decline; oil erases wartime gains
· Fixed Income: Global bonds in strong rally as crude oil prices plunge. US long end strongly bid.
· Currencies: US dollar hits new peak Wednesday before consolidating. Sterling stays strong in crosses.