Free Trial

### POV: NAFTA CONCERNS, CAD GAINS....>

DOLLAR-CANADA
DOLLAR-CANADA: ### POV: NAFTA CONCERNS, CAD GAINS LIMITED
- NAFTA concerns continue to pressure the CAD after Mexico's Economy Minister
Guajardo said he does not see a deal before the May17 deadline.
- The USD inspired rally broke a number of key technical levels on Tuesday. The
US 10y traded at multi-year highs above 3.09%, Gold breached $1300 for the first
time since December & USDJPY cleared the 200-dma.
- USDCAD has witnessed an impressive bounce from 1.2730 to 1.2925 with focus on
the key 1.3000 area and YTD high at 1.3125.
- The MNI FX Technical Signal Monitor is generating overall positive signals.
Seasonal trends have seen USDCAD rise 6 of the last 8 years in May and is
currently showing gains of 0.10%.
RISK - Friday's CPI & Retail Sales remain the big event risk of the week.
Following Governor Poloz recent hawkish language, any surprises to the upside
could prompt the BoC to take a more aggressive approach.

To read the full story

Close

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.