North American Summary and Highlights 24 August
Overview - The USD was slightly firmer though a fresh Trump tariff announcement targeted on Canada and later Bessent’s announcement on sanctions targeting Iran did not suggest an immediate impact.
North American session
The USD was generally slightly firmer in subdued trade. Trump escalated the rhetoric in trade dispute with Canada by stating tariffs on autos imported from Canada would be raised to 50%, but not until January 1 2027. Treasury Secretary Bessent later stated that the US would target countries and entities doing business with Iran for sanctions, though exactly who would be sanctioned, and how quickly, was not made clear.
USD/JPY found support below 159 but found resistance near 159.20. EUR/USD saw modest losses finding support around 1.1660. ,EUR/GBP was little changed but EUR/CHF sustained European gains to .9360 from .9350. USD/CAD marginally expended earlier gains as far as 1.3860 though AUD/CAD slipped back to .99 from .9920 as AUD/USD slipped below .7150.
European session
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.