For a very long time USA, Mexico and Canada were trying to reach an agreement on the question of NAFTA. This is the organization that Trump really disliked and that was meant to be changed because of this. And, surely enough, Trump got his way and the talks started. But, Trump, being Trump didn’t really let the negotiations to come to an end and logical conclusion. USA were constantly changing their opinion, thus prolonging the talks. And of course, having an old and obsolete trade terms sure did hurt the economies of Mexico and Canada, with the latter losing a lot of power with oil prices’ fall.
But now, it is reported that the three sides of the negotiations have reached an agreement and that all of the countries are prepared to welcome something instead of NAFTA. But did that have influence on USD/CAD couple?
It sure did. Especially given the fact that USD is not exactly doing well right now. So, even despite oil falling today, we can see that CAD is dragging USD/CAD down, lower and lower. Some say that it is because of the prospect of the deal, some say that it is a clear sign of a full-blown recession for USD. Well, while we do not know about that, we know that our trading signals are for sure going to help you in today’s USD/CAD trading.