USD / CAD - Canadian dollar sinking

- Traders dismiss Trump’s latest tariff salvo on Copper and Pharmaceuticals.- FOMC minutes may reveal extent of dovish bias.- US dollar slightly higher ahead of FOMC minutes.USDCAD open 1.3665, overnight range 1.3660-1.3695, close 1.3660, WTI 68.64, Gold 3389.37The Canadian dollar is gradually sinking due to Trump’s latest tariff attack. Canada is the second largest source of copper for the US and Trump decided to levy a 50% tariff on imports of that metal. The latest tariff salvo is occurring even as Canadian and US officials are trying to negotiate a trade deal. WTI oil rallied from 67.79 to 68.93 range due to caution after Yemeni Houthi’s renewed attacks on Red Sea shipping. A cargo shop was hit on Monday, and it sank, killing three crew members. US API crude inventories rose by 7.1 million barrels last week. Today’s release of the FOMC minutes may reveal whether recent dovish tones from Governors Waller and Bowman reflect a broader shift in committee sentiment. Both hinted at the potential for a July rate cut, which contrasts with Fed Chair Powell’s more measured outlook.Asian equity markets mostly responded negatively to the news of new copper and drug tariffs. The ASX 200 fell 0.61%, the Hang Seng shed 1.06%, while Japan’s Topix added 0.41%. European stocks are mostly higher despite rising geopolitical tension, with the CAC 40 up 1.32% and Germany’s DAX gaining 1.04%. US equity futures point to a cautious open, with S&P 500 futures up just 0.13%. The US 10-year Treasury yield holds at 4.41%.EURUSD traded in a 1.1702–1.1730 band, choppy and directionless as traders weigh possible EU exposure to Trump’s next tariff salvo. The pair’s uptrend from March is intact but momentum may be stalling.GBPUSD traded in a 1.3565–1.3609 range as it attempts to recover prior session losses. The uptrend from April remains valid while prices stay above 1.3480, though caution prevails due to ongoing tariff headlines.USDJPY chopped between 146.53 and 147.18, rising during Asian trade before softening in Europe. The threat of 25% auto tariffs has complicated the Bank of Japan’s tightening path. AUDUSD had a small bid in a 0.6510–0.6545 range, Prices continue to benefit after the RBA held rates steady at 3.85%. Traders are biding time ahead of the Fed minutes.The US and Canadian economic data calendar is clear.