Analysts at TD Securities summarised the key highlights from closing Friday and explained what they are watching in markets ahead.
Key Quotes:
“NAFTA talks ended in ambiguity, with the US announcing that it will proceed with a US/Mexico deal while extending an olive branch to Canada by offering to negotiate into next week, despite media reports stating that Trump will not compromise on key issues. Canadian equities sold off (TSX: -0.6%) to underperform an unchanged S&P 500 while rates rallied by ~4 bps across the curve as CAD-USD spreads tightened 6bps in the long-end.”
“The USD saw a broad advance with AUD (-1.0%) leading the selloff.
MXN (unch) emerged unscathed from the noise around NAFTA while CAD (-0.5%) fell on fears that Canada will be left behind in a deal.
What We’re Watching in Markets
“Australian retail sales and Caixin PMI are the data focus for Monday.”
“Today brings the end of the so-called summer doldrums and many are happy to say good riddance to August. The past few weeks have seen Trump filp from deal-maker back to deal crusher, pushing recently for additional tariffs on China.”
“With EUR/USD holding the 1.1650 level it is hard to unpack the impact of month-end flows, market liquidity, and the macro narrative.”
“A busy week ahead for Treasuries, with top-tier August data due and plenty of Fed speakers on the wires.”
“Trade concerns and EM sentiment will remain the key drivers ahead of payrolls.”
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