NAFTA negotiations: Canada and USA rushing into agreement
NAFTA negotiations between the USA and Canada resumed on Wednesday following US-Mexico bilateral agreement on Monday are intensifying. Ahead of the Friday deadline, the two allies are looking for areas of commonality to renew the outdated, 24-year-old deal.
The Foreign Minister of Canada traveled to Washington το re-join NAFTA negotiations as time is running. Mexican President wants to sign the pact prior to leaving office at the end of November before his successor takes over.
The Canadian Minister stated that Canadians will stand up for the Canadian national interest and for Canadian values. However, she added, that there are areas where the three countries can find a compromise that everyone can live with.
Although there are red lines, there is also hope that the long-lasting talks will lead to a deal. The US President and the Canadian Prime Minister expressed optimism on Wednesday about reaching an agreement by Friday.
In the meanwhile, China’s Ministry of Commerce says trade spat with the U.S. can only be resolved through talks as equals.
Forex Market amid NAFTA negotiations
• The Dollar index dropped for a fifth consecutive day. The NAFTA negotiations between the USA and Canada eased trade war fears and boosted traders’ appetite for risk.
• The New Zealand Dollar slipped 1% against the greenback after business confidence had dived to a 10-year low in August.
• The Euro traded flat against the US Dollar.
• The Sterling got positive vibes on Brexit hopes but a no-deal Brexit caps gains. According to Reuters’ poll, foreign exchange analysts have forecast the pound will weaken to $1.20 in the event of a no-deal Brexit. The pound climbed to a one-week high against the euro.
• Oil prices edged up supported by US sanctions over Iran, fall in US inventories and disruptions to crude supply from Venezuela. Brent crude futures rose 60 cents a barrel, while U.S. crude futures rose 40 cents from their last close.
• Gold prices dropped today as the dollar firmed amid expectations of higher US interest rates.
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