OIL: Oil End of Day Summary: Crude Slide Continues

US President Trump offers his take of today's call with Canadian PM Trudeau, saying it ended ended on a "somewhat" friendly manner. The below are taken from Truth Social: 

• "Justin Trudeau, of Canada, called me to ask what could be done about Tariffs. I told him that many people have died from Fentanyl that came through the Borders of Canada and Mexico, and nothing has convinced me that it has stopped. He said that it’s gotten better, but I said, “That’s not good enough.” The call ended in a “somewhat” friendly manner! He was unable to tell me when the Canadian Election is taking place, which made me curious, like, what’s going on here? I then realized he is trying to use this issue to stay in power. Good luck Justin!"
• "For anyone who is interested, I also told Governor Justin Trudeau of Canada that he largely caused the problems we have with them because of his Weak Border Policies, which allowed tremendous amounts of Fentanyl, and Illegal Aliens, to pour into the United States. These Policies are responsible for the death of many people!"

Wires report Canadian sources as saying discussions will continue today. This follows the one-month delay for auto tariffs announced earlier today, as previously hinted by Lutnick on the grounds that they are USMCA compliant. Auto production is particularly intertwined with US production lines, meaning tariffs there would be particularly damaging for all parties. 

• Treasuries are extending session lows even as underlying risk factors over trade policy remain. However, optimism appears to be rising as headlines reveal Pres Trump & Pres Trudeau will continue discussions over tariffs.
• June'25 10Y contract trades -13.5 lower at 110-26.5 -- nearing initial technical support at 110-23/110-00 (Low Feb 28 / High Feb 7).
• Curves steeper with short end still outperforming: 2s10s +4.926 at 29.884, 5s30s +2.477 at 51.532.
• Stocks are inching higher - session highs but off overnight levels, SPX eminis +39.5 at 5829.0.
• Bbg US$ index retreating: BBDXY -12.34 at 1272.24.
• VIX vol index is rolling over: VIX -.98 at 52.53 vs. 24.84 high.

• Both sides of the EURUSD trade continue to work in a bullish direction, with greenback weakness extending throughout Wednesday’s session and the latest German fiscal developments providing a significant boost to the Euro.
• EURUSD has risen 1.5% and sits at session highs as we approach the APAC crossover. Dips for the single currency over the past 24 hours have remained extremely shallow, threatening an even stronger rally as we approach both the ECB meeting and NFP later in the week.
• Euro strength remains broad based, with the EURCHF surge continuing to standout. Following the break of 0.9518, the cross has extended gains to 1.62% on Wednesday, rising above 0.9600 for the first time since July last year. Most recent headlines on a one-month delay for Canada on Autos has done little to move the needle, however, EURCAD continues to rise aggressively. EURCAD is up 1.4% on Wednesday and has risen to a fresh four-year high above 1.55. Resistance remains scant here, signalling scope for a more protracted move to the pandemic induced highs just shy of 1.60.
• Separately, EURGBP has also extended its short-term reversal, rising 0.9%. This cross will be worth monitoring as we approach strong downtrend resistance, intersecting around 0.8430.
• EURAUD appreciation is also gathering significant pace, and today’s 0.6% advance looks set to extend its winning streak to 9 consecutive sessions, and total gains of around 3.85%. The last time we had a longer winning streak was back in December 2012, where EURAUD advanced for 11 sessions in a row and rose 3.36%.
• Uk construction PMI crosses Thursday, before the ECB decision/press conference and US jobless claims data.