USD/CAD drops back to test 1.2900 on NAFTA news
- CAD recovers losses as Canada tries hard to secure the NAFTA deal with the US and Mexico.
- Focus shifts to Canada’s current account and US Q2 GDP release for fresh incentives.
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.
USD/CAD Technical Levels
Kenny Fisher at MarketPulse offers key technical levels for trading USD/CAD in the day ahead.
|
S3 |
S2 |
S1 |
R1 |
R2 |
R3 |
|
1.2733 |
12733 |
1.2831 |
1.2970 |
1.3067 |
1.3160 |
1.2831 is providing support.
1.2970 is the next resistance line.
Current range: 1.2831 to 1.2970.