Today's expected range for the Canadian Dollar against the major currencies:
US Dollar 1.3600-1.3750
Euro 1.5930-1.6180
Sterling 1.8420-1.8670
WTI Oil (opening level) $100.95
The CAD/USD is opening at 1.3721 ( 0.7288 )
USD/CAD is range bound as the market mixs in the news coming from from the US-China summit.
Investors are reacting to comments from a White House official reported by Reuters, stating that the meeting between US President Donald Trump and Chinese President Xi Jinping was positive, with both sides discussing stronger economic cooperation. Discussions included broader market access for American businesses in China, increased Chinese investment in the USA, and higher Chinese purchases of US agricultural products.
Both leaders also stressed that the Strait of Hormuz must remain open and reaffirmed that Iran must never acquire a nuclear weapon. These statements eased some concerns over disruptions to global energy flows, although supply worries remain in place following recent geopolitical tensions in the Middle East.
West Texas Intermediate (WTI) Oil trades above $100,, supported by persistent concerns surrounding global supply. Data from the Energy Information Administration (EIA) showed that Crude Oil flows through the Strait of Hormuz had already declined during the first quarter following the escalation of regional tensions.
This rise in Oil prices could support the CAD, given that Canada remains the largest Crude exporter to the United States. Firmer Oil prices tend to strengthen the CAD, which could limit upside potential in USD/CAD despite a still-supportive backdrop for the USD.
The US Dollar Index remains stable for the day near 98.50. US inflation data continue to support expectations for a restrictive monetary policy stance after April's Producer Price Index (PPI) accelerated more than expected, reducing expectations for interest rate cuts from the Fed.