Canadian Dollar drops sharply on a report by the National Post that it’s rejected from the senior level NAFTA talks between the US and Mexico, which will be held later this week. Quoting unnamed source, the report noted that the request by Canadian Foreign Affairs Minister Chrystia Freeland to join the meeting was ignore or spurned outright by US Trade Representative Robert Lighthizer. And Lighthizer is planning not to involve Canada unless the latter make some major concessions.
Separately, it’s reported that the US and Mexico will hold ministerial-level NAFTA trade talks on Thursday in Washington. According to a Mexican source quoted by Reuters, there will be “technical meetings probably until Wednesday and a ministerial meeting on Thursday.”
USD/CAD rebounds strongly on the news, just ahead of near term channel support. While 1.3092 minor resistance is breached, there is no follow through buying yet. Focus is now on this resistance level.
