The new trading week begins with the U.S. dollar modestly higher, led by a 0.57% gain in USD/CAD after trade talks between the United States and Canada broke down.

As a review, the U.S.-Canada trade negotiations collapsed late Friday, reversing earlier optimism that the two sides were close to a framework agreement. The United States moved ahead with 50% tariffs on roughly $20 billion of Canadian goods, while Canada responded with dollar-for-dollar retaliatory tariffs set to begin September 8. Disagreements over steel, aluminum, autos and lumber helped derail the discussions. Both sides blamed the other for introducing unacceptable last-minute demands, and no new talks are currently scheduled.

The Canadian dollar weakened on the news, pushing USD/CAD higher. The breakdown has put U.S.-Canada trade tensions back into focus after progress toward a deal earlier last week. The scale matters for markets: the United States and Canada maintain one of the world's largest bilateral trading relationships, and with no talks on the calendar, Canada's September 8 retaliation date now stands as the next fixed milestone in the dispute.

From a technical perspective, USD/CAD has moved up to test the 200-day moving average at 1.38457. The high so far has reached 1.3846. A move above that level is needed to give buyers more confidence. The 200-day moving average is one of the most widely followed gauges of longer-term trend in technical analysis, so the proximity of today's high to the average — 1.3846 against 1.38457 — highlights how tightly the pair is trading around the level.

Treasury yields are lower across most of the curve, and U.S. stock futures are pointing to a softer opening.

In today's Kickstart video, I take a technical look at EUR/USD, USD/JPY and GBP/USD and outline the bias, risk and targets — three things every trader should be aware of as the new trading week gets underway.

In the forex market, the U.S. dollar is moving against the major currencies as follows:

• EUR/USD: up 0.10% at 1.1667
• USD/JPY: down 0.15% at 159.17
• GBP/USD: up 0.07% at 1.3630
• USD/CHF: down 0.10% at 0.8018
• USD/CAD: up 0.57% at 1.3842, making the CAD the weakest of the majors
• AUD/USD: up 0.11% at 0.7161
• NZD/USD: up 0.20% at 0.5962

Movements in the other majors are far more muted, making USD/CAD the clear outlier at the open and underscoring that the day's currency story is concentrated in the trade-dispute pair.

The U.S. Treasury market is starting the week with yields mostly lower, particularly at the longer end of the curve:

• 2-year: 4.235%, +0.2 basis points
• 5-year: 4.408%, -1.4 basis points
• 10-year: 4.704%, -3.3 basis points
• 30-year: 5.233%, -4.3 basis points

The decline in longer-term yields comes as the market continues to focus on Treasury Secretary Scott Bessent's efforts to address elevated yields. Reports this morning say Bessent could potentially tap nearly $1 trillion sitting in the Treasury General Account to help fund additional bond buybacks. The Treasury General Account is the U.S. government's operating account at the Federal Reserve, so drawing on it would provide funds without new debt issuance. Officials have not indicated how much, if any, would be used or when such a move could be announced. The idea is reportedly under consideration and could include purchases of off-the-run securities — older Treasury issues that have been replaced by newer auctions and tend to trade with thinner liquidity.

European equities are mixed in early trading:

• German DAX: +0.02%
• France CAC: -0.04%
• UK FTSE 100: +0.17%
• Spain Ibex: +0.47%
• Italy FTSE MIB: +0.18%

U.S. stock futures are pointing toward a lower opening:

• Dow industrial average: -58 points
• S&P index: -19.87 points
• Nasdaq 100: -154 points

Commodities are also active. Gold continues its surge and is trading up $65.64, or 1.43%, at $4,668.30. Silver is up 0.77% at $69.48, while bitcoin is higher by 0.89% at $78,411. Gold has been supported by the recent decline in the dollar and continued concerns surrounding the Treasury market.

Crude oil is moving in the opposite direction, falling $1.34, or 1.55%, to $85.29 as the market awaits further details on U.S. sanctions against Iran. Iran ranks among OPEC's largest crude producers, so the scope of any enforcement feeds directly into the global supply picture the market is watching.

With yields, Treasury policy, geopolitics and equities all in play to start the week, the technical levels will help define whether buyers or sellers take greater control in the major currency pairs. The calendar adds markers of its own, chief among them Canada's September 8 retaliatory tariffs and any decision on Treasury General Account buybacks. In the video, I outline those levels and what needs to happen to shift the bias more bullish or more bearish.