Forex: USD Fell on Canada’s Alignment with President Trump on Trade
The US fell Wednesday in Asia as sources said Canada was ready to make a concession to the United States to resolve their talks over reworking the North American Free Trade Agreement (NAFTA).
- US Dollar (.DXY) Index finished littl changed at 95.19, looking to remain above its 50-Day MA at 95.07 after dipping below that level in overnight trade.
- EUR/USD: -0.04% to 1.1591
- GBP/USD: -0.11% to 1.3014
- USD/CHF: -0.17% to 0.9731
- USD/JPY: +0.41% at 111.55
- USD/CNY: +0.22% to 6.870
China will ask the World Trade Organization (WTO) next week for permission to impose sanctions on the United States for Washington’s non-compliance with a ruling in a dispute over US dumping duties.
“Worries about many things are still lingering so it becomes hard to shift to a mood of aggressive risk taking,” said a senior analyst at Sony Financial Holdings.
“The USD/JPY rose Tuesday, but those gains are gradually coming off as there isn’t a lot of appetite to take risk,” she said.
The USD traded slightly lower after 2 Canadian sources with direct knowledge of Ottawa’s negotiating strategy said overnight Ottawa was ready to offer the United States limited access to the Canadian dairy market as a concession in negotiations to remake NAFTA.
Canada’s protected dairy industry has been a major sticking point in NAFTA talks between the 2 countries. Canadian Foreign Minister Chrystia Freeland returned to Washington Tuesday for trade talks aimed at rescuing NAFTA ahead of a looming 1 October deadline.
The .DXY, which measures the Buck against 6 major currencies, was 0.07% lower at 95.185.
The Canadian Dollar or Loonie was little changed at 1.3073 per USD after rallying nearly 0.75 of a per cent late in the US session on the trade talk news.
Anxiety over the trade dispute between China and the United States, the world’s Top 2 economies kept many investors on edge.
The Aussie (AUD) traded near a 2.5-year low of 0.7085 hit Tuesday on concerns Australia’s exporters could suffer from any damage to the Chinese economy from a trade war.