Musk Shifts Focus Away from Political Campaigns, Vows to Stay as Tesla CEO

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3780-1.4020

Euro                 1.5610-1.5840

Sterling            1.8500-1.8720

WTI Oil (opening level) $62.48

The CAD/USD is opening at 1.3891 ( 0.7199 )

Gold’s consolidation period shows signs of maturing after a break above technical resistance at USD 3,250 triggered an extension overnight to USD 3,314, supported by renewed US dollar weakness amid ongoing concerns about the fiscal health of the US economy, and the latest geopolitical news from the Middle East.

Headlines

·    Canada's inflation rate fell to 1.7% in April 2025 from 2.3% in March, exceeding expectations of 1.6%. This is the smallest increase in consumer prices in seven months, mainly due to a drop in energy prices following the removal of the consumer carbon tax and OPEC's oil output hikes.

·    Japan may accept a US tariff reduction instead of an exemption, reports Kyodo. Economy Minister Akazawa, the chief tariff negotiator, will visit the US for the third time on Friday, with a possible fourth visit this month, per Nikkei.

·    Japan's trade deficit dropped to JPY 115.85 billion in April 2025 from JPY 504.69 billion a year earlier, below the expected JPY 227.1 billion surplus. Exports grew 2% to JPY 9,157.16 billion, despite slowing due to U.S. tariffs. Imports decreased 2% to JPY 9,273.00 billion, reversing March's rise, with a smaller drop than anticipated..

·    Tesla CEO Elon Musk said he will spend a “lot less” on political campaigns in the future as said he had “done enough” in that area. At the same time, he vowed to remain as CEO at Tesla for the foreseeable future as the continues to pursue an approximately USD 100 billion pay deal from Tesla that a Delaware court rejected as recently as December of last year.

Key Points

Equities: US rally ends; Europe at 2-month highs; China optimism; UK inflation surprises

Volatility: VIX flat at 18; options expiry could lift vol; short-term divergence

Digital assets: BTC nears record; ETH, XRP, SOL gain; stablecoin bill progresses; SEC delays

Fixed Income: Long Japanese government bond yields continue to rip higher

Currencies: USD sharply weaker overnight, but USDHKD hits top of band

Commodities: Crude and gold jumps on weaker dollar and Middle East risks