Get the clarity you need to navigate shifting market conditions with confidence. The Market Services FX Spotlight delivers timely insights and analysis from RBC Investor Services’ FX Market Trading Desk, helping you understand the currency moves, central bank decisions and geopolitical shifts that matter most to your portfolio and your clients.
Headlines
- Donald Trump announced a new 50% tariff on Canadian exports under Section 338 of the 1930 Tariff Act, with carve-outs for energy and critical minerals and a 30-day implementation window before August 19.
- The Bank of Canada held its policy rate at 2.25% at its July 15 meeting, delivering a more optimistic Q2 outlook while raising its 2026 inflation forecast.
- Canadian CPI for June came in cooler than expected, with headline month-over-month inflation at –0.4% versus forecasts of –0.2%.
- Iran struck vessels in the Strait of Hormuz on July 7, reigniting Middle East tensions that had appeared to be de-escalating, pushing oil above UDS 95/bbl and prompting a US military response.
- Andy Burnham was confirmed as UK Prime Minister on July 20, with his policy announcements on housing, transport and fiscal flexibility sending gilt yields higher and sterling lower.
- Korea launched 24-hour won trading on July 6 and the Bank of Korea raised rates for the first time in three years.
Donald Trump announced a new 50% tariff on Canadian exports, inclusive of some USMCA-compliant goods but with carve-outs for energy and critical minerals. The initial USDCAD reaction was muted, as new developments or resolutions could surface during the 30-day period prior to the implementation date of August 19.
