CAD: USD/CAD Slips on "Extremely Productive" Trump-Carney Call
Mar-28 15:14
Trump posts on Truth Social: "I just finished speaking with Prime Minister Mark Carney, of Canada. It was an extremely productive call, we agree on many things, and will be meeting immediately after Canada’s upcoming Election to work on elements of Politics, Business, and all other factors, that will end up being great for both the United States of America and Canada. Thank you for your attention to this matter!"
USD/CAD slips on that Trump post - market clearly buying into Trump's view that "It was an extremely productive call" and may support Ontario's expectations that Canada could be spared the very harshest of Trump's tariff measures next week.
- USD/CAD through to new daily lows at typing: prints 1.4282 before stabilising, but steers clear of yesterday's 1.4260 lows.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
STIR: Large June'25 SOFR Call Spread Buying, Midcurve Skew Play Block
Feb-26 15:12
- +50,000 SFRM5 96.18/96.62 call spds .62 on legs
- Block, 5,000 2QM5 96.50/96.75 call spds vs. 95.50/95.75 put spds, 4.0 net/calls over at 0957:20ET
JPY: USD/JPY Re-Correlates With Stocks, Resistance Seen Scant
Feb-26 15:11
- Best volumes of the US and European sessions go through on the latest move in USD/JPY, although participation was seen stronger during Tokyo trade. Nonetheless, the pair edges to a new daily high - a move that goes someway to pausing the bearish phase that kicked off on the break of Y151.00 to the downside.
- A close above 148.57 today would confirm an end to the run of lower lows in the pair - which will raise questions about the possibility of a sustainable bounce in prices in the near-term. The recovery off lows for the pair has mirrored the corrective bounce in equities - particularly in the US, suggesting and return lower for the e-mini S&P could hinder any further recovery.
- We note USD/JPY has often been in demand in the early hours of the Asia-Pac session in recent weeks - particularly when following a sharper phase of selling in US hours. With the price now ~125 pips above yesterday's lows, markets will be watching for any continuation of this trend, particularly as resistance is seen scant into 150.74, the high from Feb 21.
US TSYS: Post-New Home Sales
Feb-26 15:07
- Brief two-way flow as Treasuries maintain mildly weaker levels after lower than expected New Home sales for January, but large up-revisions to prior.
- The Mar'25 10Y contract trades 110-14.5 (-2), well inside technicals: resistance at 110-21 (High Feb 25), support below at 110-00 (High Feb 7 and a recent breakout point).
- Curves flatter: 2s10s -1.972 at 17.692; 5s30s -1.583 at 40.802.
- Cross asset: stocks moderately bid (SPX eminis +35.50 at 6005.25); Gold weaker (-11.71 at 2903.27), Crude steady (WTI at 68.93), Bbg US$ index firmer, near highs at 1288.39 (+3.71).
