Canada’s wholesale sales increased by 0.1% in May, surprising experts who had predicted a 0.4% decline. This rise occurs amid fluctuating global markets due to various trade issues. In the forex market, the AUD/USD pair found slight support around the 0.6480 level before climbing back to around 0.6550, influenced by the strength of the US Dollar and ongoing trade concerns.

Euro and Dollar Dynamics

The EUR/USD is trading below 1.1700 due to stronger demand for US Dollars. Recent tariff announcements by Donald Trump have affected currency markets and pressured the Euro. Gold prices are currently around $3,350 per troy ounce, facing downward pressure after three days of gains. The market is paying attention to upcoming US inflation data, especially in light of new tariff threats. Ethereum is trading close to $3,000 after BitMine reported significant ETH holdings. Additionally, over $990 million has flowed into Ethereum exchange-traded funds recently. Financial markets are reacting to global trade dynamics and potential tariff changes. This week, the focus will be on US economic data and trade policy updates.

Canada Wholesale Sales and Domestic Impact

Canada’s 0.1% rise in wholesale sales offers a glimpse of resilience in domestic supply chains, especially given expectations of decline. Even small growth during global trade challenges can have a stabilizing effect. Imports and wholesale distribution are sensitive to broader policy changes, so any positive surprises in these figures could impact pricing trends in other industries. If wholesale activity strengthens despite external pressures, it may provide moderate support for Canadian interest rate expectations, even if overall inflation remains low. The bounce of the AUD/USD from the 0.6480 level back to 0.6550 indicates short-term market movements rather than long-term commitment. There’s a balance between improving local data and ongoing US strength. For those involved in derivatives, the bounce may provide an opportunity for covered call strategies or a reassessment of short positions. The pair remains affected by commodity sentiment and China’s industrial outlook, both of which lack stability. Future positioning should consider the likelihood of renewed US Dollar buying against news from Beijing. For the Euro, its performance below 1.1700 against the dollar is typical—capital usually flows to the dollar in times of risk aversion. However, Trump’s new tariff discussions have had quick effects, causing capital to leave Europe. The Euro’s weakness may persist until the European Central Bank more directly addresses growth disparities. We’re observing the EUR/USD options skews since they seem to underprice significant downside risk, creating unique opportunities for those structuring straddles or ratio puts. Gold prices at $3,350 are softening after three days of increases, reflecting shifting inflation expectations. The recent tariff spike hasn’t prompted the typical surge in bullion demand. Instead, even slight adjustments in real rates are tightening conditions. If US inflation surprises arise soon, gold may test lower levels near $3,280, especially if futures liquidity declines. Notably, UVXY and call hedge volumes are low. In the crypto market, Ethereum’s price near $3,000 following BitMine’s disclosures shows that investors are focusing on bulk holdings, not just headline flows. The inflow of $990 million into Ethereum-linked ETFs indicates strong institutional interest. If derivative volumes keep rising without a solid support above $3,100, we may experience increased volatility in weekly expirations. This situation requires wider stops and adjustments for those managing systematic options overlays. Global trade changes and upcoming US economic data are primed for significant reactions, but the next few weeks may also clarify the persistence of trade aggression. For short-term traders, it’s more about aligning their exposure to assets likely to respond sharply when market trends shift than about predicting policy announcements. Statistics will influence sentiment, but positioning will dictate prices. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now