Update from North America

Dollar Up Ahead of Bessent Briefing

The U.S. Dollar is trading in favorable ranges against G10 peers after last week marked its worst weekly performance in nearly a month.

United States Treasury Secretary Scott Bessent is scheduled to speak at 2pm this afternoon and is expected to present the United States’ plan to economically isolate Iran and its trading partners. This follows President Donald Trump’s threat of economic warfare as an avenue to end the stalemate in the Middle East. In an interview given last Thursday, Bessent stated that this will be the “greatest coordinated economic isolation in history,” echoing rhetoric from former President George W. Bush in the aftermath of the September 11th attacks in 2001. Traders are cautiously positioning themselves ahead of the briefing, as its potential effects on oil and inflation remain unclear. WTI opens the day over $85/bbl and Brent over $92/bbl.

What to Watch This Week…

The complete Economic Calendar can be found here.

CAD

The Canadian Dollar is the G10’s worst performer this morning following the collapse of U.S.-Canada trade negotiations late Friday evening. Negotiations were suspended by Canadian Prime Minister Mark Carney after the U.S. made changes to its proposal which Carney deemed “unfair” and “uneconomic.” As a result of the breakdown in talks, the U.S. imposed new 50% tariffs on hundreds of Canadian products, which could result in some Canadian exporters effectively being cut off from the U.S. market. As of this morning, President Trump has temporarily suspended tariffs on some of those products, such as alcohol and motor vehicles. Canada imposed retaliatory tariffs on $20 billion worth of U.S. goods, which go into effect September 8th. Overall, the escalation in tariffs has renewed concerns about the growth of the Canadian economy.

NZD

The New Zealand Dollar is down against the Buck this morning following a particularly disappointing retail sales print overnight. The weakness of the release has reinforced concerns regarding the health of the economy. Despite this, Traders are continuing to price in interest rate hikes from the Reserve Bank of New Zealand, which has limited the downside for the Kiwi.