Canadian foreign minister stated that there was good progress on NAFTA key issues. The progress seems to be related to the issue of car making and what constitutes an American car. All sides seem to push for a new NAFTA agreement before July 1st in order to avoid clashing with Mexican elections, and time frames such as mid to end May for an acceptable agreement could be feasible. Any further positive headlines regarding NAFTA could support CAD.
USD/CAD traded in a sideways manner yesterday, breaking the 1.2610 support line twice in the 4 hour chart. We see the case for the pair to drop somewhat today as the financial data due out later on could favor the CAD side. Should the pair come under selling interest it could break the 1.2610 support level again and aim for the 1.2485 support barrier. Should it find fresh buying orders along its path we could see it breaking the 1.2715 resistance level and aim for the 1.2800 resistance zone.
Canadian Foreign minister stated yesterday that good progress was made on the NAFTA trade pact but still have work to do. The three countries could announce by mid-April the outlines of a settlement on the key issues of auto content. Media reports state that Trump’s top economic adviser Kudlow, predicted yesterday that there would be some positive news on NAFTA and that the stock-market would love them. Overall, should there be any further positive headlines about NAFTA we could see the CAD strengthening.
USD/CAD traded in a roller coaster mood yesterday and during today’s Asian morning, breaking the 1.2800 resistance line twice, marking the lowest rates for the past two months. Should there be further positive headlines for a possible NAFTA agreement we could see the pair trading in a bearish mood. Should the pair find buying orders along its path we could see it breaking the 1.2800 resistance line and aiming for the 1.2910 resistance hurdle. Should it continue to be under selling interest we could see it breaking the 1.2715 support line and aiming for the 1.2610 support level.