Tariffs Rattle Markets, but Canada’s Labour Data Shines

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

US Dollar        1.3550-1.3790

Euro                 1.5850-1.6100

Sterling            1.8300-1.8560

WTI Oil (opening level) $69.53

The CAD/USD is opening at 1.3674 ( 0.7313 ) 

Amidst all the upheaval caused by the US's announcement of 35% tariffs on Canadian goods at the end of last week, Friday's Canadian labour market report for June came as a very welcome surprise: 83,000 new jobs were created and the unemployment rate fell by 0.2 percentage points, despite the participation rate rising slightly. The only downside was that most of the job growth was in part-time positions. However, the Bank of Canada is likely to overlook this, given that labour market reports have been very weak over the last few months.

Headlines

It was a tense but resilient week for global markets as tariff rhetoric escalated sharply, yet tech stocks and crypto defied the noise. While Trump’s threats of 30–50% tariffs unsettled sentiment, Nvidia’s $4T valuation milestone and strength in digital assets offset some of the geopolitical pressure. With inflation data and earnings from top banks due this week, investors are bracing for clarity—or more chaos.

Tariff shockwaves hit sentiment, but tech strength and crypto resilience steadied risk appetite.

Key Points

·    Trump escalated tariffs, targeting the EU, Canada, Brazil, and Mexico.

·    Volatility rose early but faded as markets regained composure.

·    Bitcoin hit $121K Monday morning; Ethereum topped $3K; ETF flows strong.

·    Bond yields fluctuated, with expectations shifting toward a September rate cut.

·    Copper surged; gold and silver held firm; grains sold off.

·    USD strengthened, while AUD outperformed and CAD, MXN declined.