Global equities recover and the Canadian dollar strengthens after the US threatens 50% tariffs, pressuring the dollar broadly.
Global equities rebounded and the Canadian dollar recovered from earlier losses after the US threatened 50% tariffs, weighing on the US dollar. The yen was an outlier, with the dollar nearing a 40-year high against it at JPY162.85.
The dollar softened against most major and emerging market currencies, reversing some of its recent gains. Oil prices remained firm amid ongoing de-escalation efforts in key regions, adding support to commodity-linked assets.
Markets reacted to the tariff threat as a potential risk to trade flows, particularly for Canada, while broader USD weakness provided relief to risk assets.