Canadian Prime Minister Justin Trudeau stated yesterday that NAFTA negotiations are moving forward in a significant way. The statement came after US officials made a number of optimistic comments about a preliminary deal on NAFTA. Furthermore, Mexican officials stated that with enough progress, the leaders of the three countries could make an announcement at a regional summit in Peru next week. Should there be further positive headlines for a deal in NAFTA we could see the CAD strengthening albeit yesterday’s comments did not seem to have a significant impact on USD/CAD.
USD/CAD traded in a sideways manner yesterday, testing the 1.2715 resistance line. We see the case for the pair to continue to trade in that manner however the pair may be heavily influenced by the release of the US and the Canadian Employment data later on today. Should the bulls take the driver’s seat we could see the pair breaking the 1.2800 resistance level and aim for the 1.2910 resistance hurdle. Should the bears have the upper hand we could see the pair trading south breaking the 1.2715 support line and aim for the 1.2610 support barrier.
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.
The US seems to be pushing for a preliminary deal on NAFTA to be announced at a summit in Peru next week. Any preliminary deal could be focusing on the auto-industry and what could characterize an American car. The issue was also linked with the immigration issue and adds further pressure on US counterparts, especially Mexico. Should there be further positive headlines for a deal in NAFTA we could see the CAD strengthening further.
USD/CAD dropped considerably yesterday, breaking the 1.2800 support level. We could see the pair trading in a sideways manner with some bearish tones as financial data due out could weaken the USD side, however the pair could prove sensitive to any further NAFTA headlines. A bearish outlook could also be supported by the daily chart where a head and shoulders formation consolidates and could signal further dropping of the pair’s rate. Should the bears continue to be in the driver’s seat we could see the pair breaking the 1.2715 support level. On the other hand, should the bulls take over we could see the pair breaking the 1.2800 resistance levels and aim for the 1.2910 resistance zone.