Partner Center Find a Broker

Asian session traders were reluctant to make waves today as they wait for more global trade developments, but that didn’t stop Loonie bulls and bears from partying in the pip streets.

  • AU MI inflation gauge improves from 0.0% to 0.1% in August
  • NA ANZ commodity prices drop by 3.2% vs. 0.9% uptick in June
  • Saudi Arabia suspends ties with Canada

Major Events/Reports:

Saudi suspends ties with Canada

The official Saudi Press Agency announced late Sunday that Saudi Arabia will suspend new trade and investment with Canada. Saudi has also pulled out its envoy in Ottawa and has given the Canadian ambassador 24 hours to leave the country.

The move came after Global Affairs Canada tweeted that it was “gravely concerned” over the arrests of civil society and women’s rights activists in Saudi Arabia, including Badawi, the sister of jailed dissident blogger Raif Badawi and urged Saudi authorities to “immediately release” said activists.

Saudi Arabia’s foreign ministry shared that “It is very unfortunate that the term ‘immediate release’ was mentioned in the statement, which is totally unacceptable in inter-state relations,” and that “the Canadian position is an explicit and transparent interference in the internal affairs of the Kingdom of Saudi Arabia.

Statistics Canada reports that Canada has exported about 1.4B CAD to Saudi this year and imported around 2B CAD worth of products from the kingdom so far this year.

Subdued market moves

Asian session traders were reluctant to make waves today as they wait for more global trade developments.

Nikkei is a bit more optimistic ahead of a bilateral meeting between Economy Minister Toshimitsu Motegi and U.S. Trade Representative Robert Lighthizer on August 9. Meanwhile, China’s markets were mixed after China threatened tariffs on $60 billion worth of U.S. goods last Friday.

  • Nikkei is up by 0.12% to 22,552.3
  • A SX 200 is up by 0.12% to 6,258.5
  • Shanghai index is down by 0.77% to 2,719.377
  • Hang Seng is up by 0.70% to 27,870.1

Uncertainty didn’t stop commodity traders, however. Gold inched higher despite overall dollar demand while crude oil benefited from speculations that the U.S. will impose new sanctions on major exporter Iran.

  • Gold is up by 0.13% to $1,215.98
  • Brent crude oil is up by 0.10% to $73.40
  • U.S. WTI is up by 0.13% to $68.75

Major Market Mover(s):


The Loonie gapped lower against most of its counterparts but managed to recoup its losses before the session ended.

USD/CAD hit a high of 1.3020 before returning to 1.3000; CAD/JPY dipped to 85.43 before rising back up to 85.64; EUR/CAD shot up to 1.5057 before settling down to 1.5032, and AUD/CAD popped to 1.9632 before slipping down to .9610.


There were no catalysts for the move, but the low-yielding franc ended the session noticeable lower against its counterparts.

USD/CHF is up by 12 pips (+0.12%) to .9951; CHF/JPY is down up 8 pips (+0.08%) to 111.88; NZD/CHF is up by 11 pips (+0.16%) to .6710, and CAD/CHF is up by 5 pips (+0.07%) to .7654.


Jitters over global trade war escalation and optimism over last Friday’s U.S. jobs data gave the Greenback some support during the Asian session.

USD/JPY is up by 11 pips (+0.10%) to 111.34; AUD/USD is down by 7 pips (-0.09%) to .7392, and USD/CAD is up by 10 pips (+0.07%) to 1.3000.

Watch Out For:

  • 6:00 am GMT: Germany’s factory orders (-0.3% expected, 2.6% previous)
  • 8:30 am GMT: Euro Zone Sentix investor confidence