Is NAFTA At A Turning Point?


The high-tension trade environment continues today with Canadian Foreign Affairs Minister Chrystia Freeland headed to Washington to resume NAFTA talks. As a consummate politician, Ms. Freeland merely confirmed that we were at a decisive point in the saga. Although the United States has shown openness toward the automobile sector, Canada appears less willing to make concessions regarding its dairy and poultry industries.

However, a lesson can be taken from market unpredictability, as exemplified by the major turnaround on North American stock exchanges when at this time yesterday all signs were pointing to a meltdown. If you have the impression that you no longer understand what is going on with markets, you’re not alone. Comments yesterday by U.S. Federal Reserve committee member James Bullard that he did not consider further key rate increases necessary should have sent the greenback into a nosedive. It’s possible that the fact that Bullard is a non-voting member this year reduced the impact of his remarks somewhat.

Bullard does appear to speak for all parties involved, however, in describing the trade war between China and the United States as a great source of uncertainty that could significantly affect the economic outlook.

Stéphane Goulet

Range of the day: 1.2725 – 1.2845

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link



Leave a Reply

error: Content is protected !!