Forex: USD Fell on Canada’s Alignment with President Trump on Trade

Forex: USD Fell on Canada’s Alignment with President Trump on Trade

Forex: USD Fell on Canada’s Alignment with President Trump on Trade

$USD/CAD

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.

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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