The Canadian Dollar is gaining against the U.S dollar following a report that Donald Trump was planning to push for an initial deal on NAFTA.
The North American Free Trade Agreement has been a thorn in the Trump administration’s side. During the campaign, he promised to cancel the agreement for being better for Canada and Mexico. During the weekend, he threatened to pull the country out of the deal because of a news story about an immigrant caravan. He argued that Mexico was not doing enough to prevent the increased inflows of migrants.
The willingness by the president to sign the initial deal comes after an increased selloff in the American stocks. Yesterday, all the major indices in the country ended the day significantly lower with the NASDAQ falling by more than 2%.
The USD/CAD pair is currently trading at 1.2888, which is slightly lower than the intraday high of 1.2943. The pair may continue moving down, as the trade issues continue to bring more uncertainty to the investors. In addition, it may continue moving lower as traders wait for tomorrow’s employment change from ADP and the official employment data on Friday. This makes the possibility of the pair may fall to 1.2860 highly likely.