FX.co ★ TSX Struggles for Direction

The S&P/TSX Composite Index remained close to 26,420 on Wednesday, fluctuating slightly from its record high as investors considered the latest trade and monetary policy developments. The Bank of Canada maintained its policy rate at 2.75 percent, which aligns with April's inflation data indicating a decrease in headline CPI towards the target, although core inflation measures stayed high. Meanwhile, ongoing negotiations between Ottawa and Washington are aiming to secure exemptions from the increased steel and aluminum tariffs imposed by President Trump. This has helped reduce concerns about a potential broader trade impact, providing some protection to export-driven industries. Overall, the stock market was relatively stable in anticipation of potential resolutions to tariff issues, while energy stocks experienced gains due to rising oil prices. The increase in oil prices was supported by temporary production disruptions caused by wildfires in Canada and only slight production increases planned by OPEC+ in July. Additionally, the deadline set by Washington for submitting exemption requests on Wednesday emphasized Ottawa's efforts to achieve a carve-out, thus safeguarding key exporters from the immediate imposition of tariffs.