Canadian Market Extending Recent Gains

Index Update:  Despite a somewhat cautious mood ahead of crucial U.S. data due later in the week, the Canadian market is up firmly in positive territory on Tuesday. The benchmark S&P/TSX Composite Index was up 233.51 points or 0.71% at 33,256.83.

Macro Update:  The dollar dropped against all of its major peers and U.S. Treasury yields fell across the curve amid growing economic uncertainty. With Federal Reserve officials signalling patience on rate cuts, the focus now shifts to the delayed jobs report later in the day and the CPI report on Friday. Inflation and job creation are expected to hold steady, but revisions to the 2025 jobs numbers are expected to be large. U.S. Commerce Secretary Howard Lutnick on Tuesday said the present level of dollar is more balanced and is beneficial for promoting exports and economic growth. He anticipates the GDP could exceed 5 percent in the fourth quarter of 2025 and possibly surpass 6 percent in the first quarter of 2026.

Top Movers:  Dye & Durham, Open Text Corp., Sylogist, Enghouse Systems, Computer Modelling, Lightspeed Commerce, Descartes Systems Group, BlackBerry, Coveo Solutions and Docebo gained 1.4%-4.5%.

Our Stance:  Price action is held near the key 33,200 support zone, which remains critical for maintaining positive sentiment. Sustained trade above this level would help preserve the bullish bias, while a decisive break below 33,200 could weaken momentum and open the door for a pullback toward the 33,000–32,800 area.

Commodity Update:  The Japanese yen retained firm gains, supported by a rally in domestic equities and expectations that Prime Minister Sanae Takaichi’s decisive election win may reinforce fiscal discipline. The U.S. dollar traded cautiously ahead of the non-farm payrolls report after softer economic indicators. Gold rose 0.91% to USD 5,076.70, silver gained 2.16% to USD 82.11, copper edged up 0.10%, and Brent crude advanced 0.60% to USD 69.18.

Technical Update:

On Tuesday, the S&P/TSX Composite Index rose 233.51 points, or 0.71%, to close at 33,256.83. While the advance was modest, healthy trading volumes underscored continued investor participation and confidence in the broader trend. Technically, the index remains comfortably above its 50-period SMA, confirming the strength of the short-term uptrend and keeping bullish momentum intact. The 14-period RSI stands at 60.17, signaling solid buying interest while remaining below overbought levels, which leaves room for further gains but also suggests the possibility of brief consolidation. Price action is held near the key 33,200 support zone, which remains critical for maintaining positive sentiment. Sustained trade above this level would help preserve the bullish bias, while a decisive break below 33,200 could weaken momentum and open the door for a pullback toward the 33,000–32,800 area.