USD / CAD - Canadian dollar rangebound

- Trump/Putin Summit tomorrow - US PPI and jobless claims data on tap - US dollar opens with small gains compared to Wednesday’s close USDCAD open 1.3776, overnight range 1.3745-1.3784, close 1.3760, WTI 63.04, Gold 3356.99 The Canadian dollar is directionless inside its well-defined range as traders a wait a fresh catalyst. The Bank of Canada’s July 30 meeting minutes offered little fresh information. Governing Council reiterated that, given the unusually high level of uncertainty, policy decisions need to be taken with a shorter-term focus than usual. They maintained that if economic conditions deteriorate further and trade-related inflation pressures remain subdued, a rate cut could be appropriate. WTI crude moved sideways within a 62.70–63.10 range, weighed by slowing summer demand and speculation that sanctions on Russian oil might be eased after the upcoming Trump–Putin meeting on Friday. Friday’s Trump/Putin meeting is not expected to have much impact on markets after Trump said the meeting was to secure a second meeting that include Ukraine President Zelenskyy Asian equity markets closed mixed. Japan’s Topix dropped 1.10% while Hong Kong’s Hang Seng fell 0.37%. Australia’s ASX 200 climbed 0.53%. European indexes are mostly higher, with the CAC-40 up 0.27%, the DAX gaining 0.44%, and the FTSE 100 flat. S&P 500 futures are also unchanged. The US 10-year Treasury yield slipped to 4.21%, as of 7:30 am. EURUSD see-sawed in 1.1668-1715 band. Market focus is split between Trump–Putin headlines and US rate expectations, with Bessent advocating a 50 bp September cut while San Francisco Fed President Mary Daly argued against it. Eurozone Q2 GDP met forecasts at 1.4% y/y, while industrial production rose only 0.2% versus 1.7% expected. GBPUSD extended gains in a 1.3563–1.3592 range after stronger-than-expected UK GDP data. Q2 growth came in at 0.3% q/q and 1.2% y/y, beating forecasts. Monthly GDP rose 0.4% while Industrial and manufacturing output also topped estimates. USDJPY fell in a 146.22–147.42 range, now at 146.60, weighed down by softer Treasury yields and Bessent’s comment that the BoJ should be hiking rates. AUDUSD ranged between 0.6525 and 0.6569 but is at the lower end after fading from gains on strong Australian jobs data, which showed unemployment ticking down to 4.2% and a 24,500 job increase. Today’s US data includes PPI excluding food and energy (forecast 2.9% y/y vs. previous 2.6%) and weekly jobless claims (forecast 228,000 vs. prior 226,000).