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Trump Vows ‘Very Hard’ Response Against Iran After Sanctions Shift on Russian Oil

  Iranians take part in a protest marking the annual al-Quds Day (Jerusalem Day) on the last Friday of the holy month of Ramadan, in Tehran. President Donald Trump announced that the United States will strike Iran “very hard over the next week,” a declaration that came shortly after his administration issued a partial 30‑day waiver allowing purchases of sanctioned Russian oil. The move, intended to ease soaring global energy prices amid the U.S.-Israeli conflict with Iran, has drawn international scrutiny.  The temporary easing of sanctions on Russian oil is part of a broader strategy to stabilize markets shaken by the ongoing Middle East war. Energy prices have surged and then fluctuated sharply in recent days, prompting the administration to adjust its approach to maintain supply and reduce economic pressure.  Trump’s warning toward Iran signals a potential escalation in an already volatile regional conflict, even as the U.S. attempts to manage global energy disrupti...
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C$ Climbs to 6-Day High on Fed Rate Cut Forecast

 


In a positive turn of events, the Canadian dollar (C$) has strengthened to a six-day high against its U.S. counterpart. Investors are celebrating the Federal Reserve’s decision to stick with its interest rate-cutting forecast for 2024.

Here are the key points:

  • The loonie (as the Canadian dollar is affectionately known) is trading 0.5% higher at 1.35 to the U.S. dollar, or 74.07 U.S. cents. It touched its strongest intraday level since last Thursday at 1.3491.
  • The Federal Reserve held interest rates steady, but policymakers indicated they still expect to reduce rates by three 25-basis-point cuts by the end of 2024. This is despite slower-than-expected progress toward the U.S. central bank’s 2% inflation target.
  • Wall Street rallied, U.S. Treasury yields fell, and the U.S. dollar lost ground against a basket of major currencies.
  • The Bank of Canada also expects to ease rates this year, as revealed in the minutes from the central bank’s policy meeting earlier this month. However, policymakers remain divided over when there will be enough evidence that conditions are right for cuts.
  • The decline in the price of oil, one of Canada’s major exports, had little impact on the loonie. U.S. crude oil futures settled 2.1% lower at $81.68 a barrel, giving back some recent gains.
  • Canadian government yields fell across the curve, tracking moves in U.S. Treasuries. The 10-year yield was down 3.2 basis points at 3.492%, extending its pullback from the highest intraday level in one month at 3.624% on Tuesday.

In summary, the Canadian dollar’s ascent reflects optimism about the Fed’s commitment to rate cuts, while the Bank of Canada keeps a close eye on economic conditions. 


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