The Canadian dollar jumped against its rivals today on optimism about the NAFTA deal and as prices for crude oil, Canada’s main export commodity, rebounded after yesterday’s slump.
Bloomberg reported that Trump administration is pushing for a preliminary deal for the North American Free Trade Agreement at the summit in Peru next week. The sources asked to remain unnamed as the discussion between US politicians was private. The United States are Canada’s biggest trading partner, therefore it is important for Canada to keep strong trading ties with its neighbor.
Crude oil prices recovered today, and that was also beneficial to the Canadian currency. With that said, analysts said that it was a relief rally and the commodity remained under pressure from negative fundamentals.
Looking forward, the loonie will likely to be affected by economic reports from both Canada and the United States due to release on Friday.
USD/CAD dropped from 1.2911 to 1.2797 as of 17:54 GMT today. EUR/CAD tumbled from 1.5884 to 1.5698. CAD/JPY rallied from 81.99 to 83.28.
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Canadian Dollar Gains amid Hopes for NAFTA Deal
