Forex Today: CAD slips on US import tariffs news, US data on sight

Amid holiday-thinned Asian trading, headlines surrounding the Trump administration dominated markets, as French election risks faded. The CAD was heavily sold into reports of the US planning a 20% tariff imposition on the Canadian soft lumber imports, while the yen also remained heavy amid an extension of the rally in the Japanese stocks and on headlines that Trump is willing to delay the US-Mexico border push.

Meanwhile, the greenback picked-up strength in Asia against most of its major peers, while EUR/USD traded largely subdued in a tight range.

Heading into Europe, focus remains on the UK’s public sector net borrowing data, which is expected to fill in an otherwise light EUR calendar. Later in the NA session, a slew of US economic releases are due on the cards, with the CB consumer confidence and new home sales data to be closely eyed for fresh USD moves.

Main topics in Asia

Trump's administration plans to impose 20% tariff on Canadian soft lumber imports - DJ

According to Dow Jones, U.S. President Trump's administration plans to impose 20% tariff on Canadian soft lumber imports.

Kantar Poll: Scots don't want another independence vote - RTRS

According to a Kantar survey, most Scottish voters do not want another referendum on independence from the UK and support for secession itself appears to have weakened, Reuters reports.

Canadian ministers Freeland & Carr condemn unfair, punitive duties on lumber

Canadian Foreign Minister Chrystia Freeland alongside Minister of Natural Resources Jim Carr crossed the wires last minutes, via Reuters, responding to the Trump administration’s plans to impose 20% tariff on the Canadian soft lumber imports.

Trump willing to delay border wall push - Politico

At reception with conservative media, the US President Trump noted that he would delay a fight over a wall at the US-Mexico border until September to avert a government shutdown, Politico reports.

North Korea stages firing drill marking military anniversary – Yonhap

Yonhap, South Korea's largest news agency, quoted a North Korean government source citing that North Korea staged what it appears to be the largest firing drill on Tuesday to mark the 85tth founding anniversary of its military.

Key Focus ahead

EUR/USD side-lined near 1.0870, awaits fresh impetus

A calm has spread across the EUR markets on Tuesday, as the bulls continue to consolidate yesterday’s massive rally, keeping EUR/USD largely flat-lined in the familiar range near 1.0865/70 region.

USD/CAD sits at fresh 2017 tops, what next?

The US dollar paused its bullish run against its Canadian counterpart over the last hours, sending USD/CAD in a phase of upside consolidations near four-month highs reached at 1.3560.

US data previewed: start of a busy week - Nomura

Analysts at Nomura offered a preview of the start of this week's busy US data schedule.

Australia's Q1 2017 CPI preview - NAB

National Australian Bank (NAB) is out with a brief preview on the upcoming Australian Q1 CPI report, scheduled for release tomorrow at 0130GMT.