USD/CAD – Loonie rallies hard on Nafta hopes

The CAD (C$1.2975) dollar has rallied aggressively this morning against the USD. It’s been pushed higher on Nafta optimism, but on the crosses there is little change (EUR/CAD €1.5129, GBP/CAD £1.6719).

President Trump is to make a trade announcement at 11 am EDT.

The ‘proof will be in the pudding,’ but ahead of the announcement U.S markets have rallied from the session’s outset on news of a potential NAFTA deal reached between the U.S and Mexico.

Material and automotive names are trading higher on the day amid the boost in risk-on sentiment, though gold ($1,206) and oil are roughly flat ($68.71).

U.S Treasury yields (10’s 2.815%) are up modestly with the curve shifting higher. USD/MXN – Mexico peso is +0.6% higher at $18.6711.

It’s believed that the Mexican President has spoken to PM Trudeau and has encouraged him to re-join Nafta talks to seek a trilateral accord this week.


  • US and Mexico reach trade deal to replace NAFTA
  • To see +40-45% of auto content made by workers earning avg. base wage of $16/hr
  • Would boost U.S and regional content in autos to +75% (prior +62.5%)
  • Canada Fin Min Freeland expected in DC shortly for talks; discussions with Canada to accelerate Monday and wrap up by end of the week.

    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.

    Dean Popplewell

    Dean Popplewell

    Vice-President of Market Analysis at MarketPulse
    Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
    Dean Popplewell