Two sides are increasing their pressure on Canada to join the agreement after they have reached deal. Autos trade, dispute settlement and agriculture are key issues.
“The deal would have to be tweaked should Canada not join” – stated by Mexico’s economy minister. On the other side, Canada’s Foreign minister will be travelling to Washington today in order to continue negotiations. Minister also stated that Canada will only sign the agreement if it is good for Canada.
USD/CAD dropped heavily breaking consecutively the 1.300 and the 1.2965 support levels, with the 1.3000 turning to resistance, as the pair broke once again the 1.2965 level (during Asian session). We could see the pair rise albeit at a slower pace, should the USD strengthen. We could see the pair aiming if not breaching the 1.3000 resistance line and should it be breached, the way may be open for the 1.3047 resistance barrier. On the other side, we could see it breaking the 1.2965 support line once again, aiming for the 1.2925 support hurdle.
Canada is thinking of introducing a safeguard action on seven steel products. Canada’s government will look into the matter in depth and identify any threats and safeguards will be applied. EU announced its own safeguards in July. Also, on Tuesday, Canadian dollar was the top performer.
USD/CAD war dropping (during the European session) and followed up with the same trend (during the US session). The financial data to be released today in the US session could apply more downward pressure for the pair. Anyway, we could see it move lower to the 1.3059 support level and break it aiming for the 1.3034 support barrier. On the other side, we could see it move towards the 1.3091 and even breach it.
Saudi Arabia won’t accept criticism from Canada. Canada made criticism on arrests of women’s rights activists. Situation between these countries is not good and it can cause new retaliations that could hurt investment flows between the countries. Saudi Arabia’s central bank have already started pulling back from investments in Canadian assets. Also, Saudi Arabia dismissed the Canadian ambassador and suspended any new business deals. which can lead to further deterioration of the relationship.
USD/CAD stabilized between the 1.30345 resistance level and the 1.30005 support barrier. We can also see it moving downwards to the 1.30005 support line and even breaking it moving lower towards the 1.29726 support barrier. There is also possibility to see it break the 1.30345 resistance line and aim higher for the 1.30591 resistance barrier.