Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Loonie Flat As NAFTA Hope Is Cancelled By Oil Drop

Published 2018-09-20, 05:09 p/m
Updated 2023-07-09, 06:31 a/m

The Canadian dollar is nearly flat on Thursday despite the U.S. dollar falling against other major pairs. Trade war fatigue has the greenback on the back foot and the loonie was higher as NAFTA negotiations restarted yesterday. U.S. President Donald Trump on the Organization of the Petroleum Exporting Countries (OPEC) not doing enough to keep crude prices low put downward pressure on the commodity.

NAFTA talks continue today between the U.S. and Canada with both sides remain optimistic but an agreement does not seem to be in the cards in the short term. Canada is facing pressure from the U.S. and Mexico as both have political timelines that have to be met to insure a quick approval. Canadian Foreign Affairs Minister Chrysta Freeland remains committed to get the best deal for Canada and after 13 months of negotiation will not compromise for the sake of a quick deal.

USD/CAD for Sept. 20, 2018.

CAD traders will be tracking Canadian inflation and retail sales data that is due out tomorrow at 8:30 a.m. EDT. The consumer price index is forecasted to show a monthly loss of 0.1 percent but still on track to a yearly 2.8-percent pace. Retail sales are anticipated to show a more robust economy with a jump of 0.6 percent. The data will put an October rate hike by the Bank of Canada firmly on the table if it beats expectations.

NAFTA sound bites have been few and far between with only general comments. Prime Minister Justin Trudeau and Trump have been in contact throughout but there appears to be still a lot of work from both sides to reach an agreement.

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.