USD/CAD: Loonie Higher On Strong Monthly GDP

The Canadian appreciated versus the U.S. dollar on Tuesday after the stronger than expected monthly report. The Canadian economy expanded at a 0.5 percent rate in May versus the anticipated 0.3 percent. The higher annual pace of growth came in at 2.6 percent and has increased the possibility of another rate hike this year, appreciating the loonie versus the greenback on the North American trading session. Oil prices fell below $70 as the U.S. dollar recovered with the announcement of new trade talks between the U.S. and China.

USD/CAD for July 31, 2018.

USD/CAD for July 31, 2018.

The is flat after the strong Canadian data has been cancelled out by the announcement of lower trade tension between China and the United States. The currency pair touched a session low of 1.3010 at 8:30 a.m., but is now back at 1.3031 after sources indicated that U.S. Treasury officials and China Vice Premier representatives intend to meet.

The NAFTA and EU-U.S. trade conversation both had positive sound bites this week. The incoming Mexican president was eager for a quick NAFTA renegotiation and he was echoed by the Trump administration. Canada and Mexico made sure to be clear that a trilateral negotiation is needed as the U.S. has been pushing for two bilateral sit downs.

Yesterday, U.S. Commerce Secretary Wilbur Ross said that NAFTA talks are close to a deal, specially with Mexico. The latest strategy by the U.S .has been to move faster on talks with its southern neighbour with a new incoming government. Mexico and the U.S. will hold ministerial talks on Thursday in Washington. Canadian officials tried to be part of the meeting but were rejected by the U.S.

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.

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 !!