The Bank of Canada implemented a widely expected 25-bps rate cut, lowering its benchmark rate to 2.75%. The cautious messaging that accompanied the decision was unsurprising, as markets remain focused on Trump and the escalating trade war.

Ontario Premier Doug Ford is in Washington today at the invitation of Howard Lutnik, following his decision to impose a 25% surcharge on Ontario’s electricity exports to the U.S.

The G-7 Foreign Ministers are meeting in Charlevoix, Quebec, with the ongoing U.S. trade war expected to dominate discussions.

WTI crude prices slipped from $67.94 to $67.12 after the Energy Information Agency (EIA) warned that global oil supply in 2025 is projected to exceed demand by 600,000 barrels per day—even in the best-case scenario. If OPEC and Russia continue to surpass output quotas, the surplus could increase by another 400,000 bpd. Meanwhile, Trump’s tariffs are anticipated to weaken global demand, keeping oil prices under pressure.

Mark Carney is set to be sworn in as Prime Minister on Friday, while the latest Leger Poll indicates a tight race between the Liberals and Conservatives if an election were held today.

EURUSD traded within a narrow 1.0860-1.0898 range overnight, remaining on the defensive as Germany’s parliament debates a proposal to ease debt restrictions. While Eurozone industrial production slightly outperformed expectations, it had little impact on the currency.