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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free Access### POV: CONSTRUCTIVE NAFTA TALK......>
DOLLAR-CANADA: ### POV: CONSTRUCTIVE NAFTA TALK COULD TRIGGER FURTHER CAD
STRENGTH
- Bloomberg reports that President Trump is pushing to announce a preliminary
NAFTA as soon as next week could see USDCAD move through 1.28 and challenge
1.2688 (50% of the 2018 range).
- Seasonal charts suggest April is a good month for CAD against the USD, rising
7 out of the last 9 years. Further strengthening the case, CAD has also improved
against the USD in Q2 for the last 4 years.
- Investment banks have recommended buying CAD on the crosses, particularly
against the EUR.
- USDCAD risk reversals in the 1m and 1w have reversed last July's highest
levels and are not currently pricing in a NAFTA collapse any time soon.
- The main event risk of the week is Friday's Canadian jobs report. The jobless
rate is expected to hold steady at multi-decade lows of 5.8% with focus on the
composition of jobs. Although job growth should be led by part time workers,
markets will also look to wages after the recent uptick in CPI.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.