Europe Summary and Highlights 24 Aug
CAD underperforms after w/e talk breakdown
Leaks into some o/s correction in the likes of USD/NOK
Oil slightly trims, waits on sanctions details next
Europe
Main action, as overnight, still coming from USD/CAD, which sees some correction from its oversold run after the abrupt trade talks breakdown at the weekend, around + ½ %. Runs towards 1.3840/50, recent low and first minor retracement of the full move lower from the 1.4250 tops.
That is tending to leak across into some oversold correction in the likes of USD/NOK too that had likewise been on a sustained down move last couple of weeks. Oil is correcting touch lower, -$1.5 after the recent runup, market now waiting to hear from Bessent today on the Iran sanctions. Iran announcing that it allowed some Iraq ships through also with the grain of the minor dip on the day.
Asia Session
The breakdown of trade talk between U.S.-Canada is somewhat unexpected as both sides seems to be really close last week. However, on late Friday we heard both sides accusing each other of malpractice in negotiations. It looks like there won't be a deal anytime soon with USTR saying no talks at current time. USD/CAD opened 50 pips higher and is trying to close the gap. Still 0.30% higher than Friday's close at 1.3807.
Broader risk sentiment is soft on Monday with lingering geopolitical tension in the Middle East and breakdown of U.S.-Canada trade talks. Major equity indexes are in the red, led by regional ones. AUD/USD is trading 0.04% lower at 0.7167 after closing the gap. NZD/USD is also down 0.04%. Treasury yields are lower across the curve, seeing USD/JPY down 0.06%. Else, EUR/USD is up 0.03% and GBP/USD is down 0.01%.