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USD/CAD drops back to test 1.2900 on NAFTA news

8/29/2018, 11:43:14 AMTrading Strategies
USD/CAD drops back to test 1.2900 on NAFTA news

The Canadian dollar caught a fresh bid-wave last minutes following the reports that Canada is ready to give way for significant concessions in order to secure the NAFTA deal, knocking-off USD/CAD to fresh daily lows just ahead of the 1.29 handle.

The North American Free Trade Agreement is a trade deal signed by Canada, Mexico, and the US, creating a trilateral trade bloc in North America. 

The bears remain on track to retest the twelve-week lows of 1.2888 reached a day before, as the sentiment around the US dollar remains vulnerable amid dovish remarks from the Fed Chair Powell and the US-China trade standoff.

Meanwhile, a mild positive tone seen around oil prices also offers fresh impetus to the resource-linked Loonie. Both crude benchmarks trade better bid ahead of the EIA weekly crude stockpiles report.

Calendar-wise, markets look forward to the Canadian current account data and US Q2 prelim GDP report due later in the NA session.