The Globe & Mail is out with a considerably optimistic report on the Canadian commerce state of affairs and, in flip, the Canadian greenback. It highlights commerce negotiations which might be presently ongoing between the US and Canada, and seem like within the remaining stretch.
It says:
- Canada would handle a protracted listing of US commerce irritants in trade for sectoral tariff reduction
- Canada woudl take away retaliatory tariffs on teh US, return US alcohol to cabinets and agree “to Washington’s interpretation of how dairy quotas needs to be allotted”
- In return the US would decrease stariffs on metal and aluminum (not completely take away)
- The deal can be an interim deal
- Discussions embrace aligning exterior tariffs on sure Chinese language items
Canada faces 50% tariffs on August 19 and that is the deadline each side are working in opposition to. If Canada can get some commerce certainty, there is a huge potential tailwind for the loonie within the later half of the yr. As we speak’s jobs report from Canada additionally highlights the resilience of the home financial system. USD/CAD is down 70 pips to 1.3941 at present, the bottom since mid-June.
