Reuters reported that Trump’s push for some form of NAFTA “agreement” before the Summit of the Americas in Lima could fail. It’s widely rumored that Trump would at least want to have something “symbolic” to sign this week. But there are still many fundamental differences between the US with its NAFTA partners Canada and Mexico.
A source was quoted saying that even a symbolic agreement needs to contain “everything defined in black and white” and key issues could not be left open for negotiation afterwards. The source noted that a deal could be possible by the end of April or early May if discussions keep advancing.
It should be noted that CAD has been strongest one this month as seen in the monthly top movers table, as well as the M heatmap. It’s mainly due to optimism that a certain form of NAFTA agreement could be delivered at the Summit of the Americas on April 13-14, or before. There is firstly, risk of sell-on-news, if the agreement is delivered. There is now secondly, risk of selloff on disappointment that it’s not delivered. So, CAD traders, beware.
