Money Canadian dollar climbs to 7-week high on signs of NAFTA progress

23:44  01 august  2018
23:44  01 august  2018 Source:   reuters.com

Mexico pushes for NAFTA deal with Trump by end of August

  Mexico pushes for NAFTA deal with Trump by end of August Mexico pushes for NAFTA deal with Trump by end of August(Bloomberg) -- Mexico is redoubling its efforts to reach a Nafta agreement with the U.S. and Canada by the end of August to increase certainty for investors and take the heat off incoming President Andres Manuel Lopez Obrador, according to three people familiar with the negotiations.

TORONTO (Reuters) - The Canadian dollar strengthened to a nearly seven - week high against its U.S. counterpart on Monday, boosted by higher oil prices and optimism that progress could be made in talks to revamp the NAFTA trade pact.

TORONTO (Reuters) - The Canadian dollar weakened to a nearly seven - week low against its U.S. counterpart on Tuesday, with the currency Canadian , Mexican and U.S. officials hailed progress on revamping NAFTA as efforts focused on crafting new rules for the auto sector, but there was no sign

By Fergal Smith

The Canadian dollar strengthened to a nearly seven-week high against its U.S. counterpart on Wednesday as the U.S. Federal Reserve left interest rates on hold and officials signaled progress in talks to update the NAFTA trade pact.

The United States and Mexico are getting close to a deal on the key issue of autos content rules at negotiations to renew the North American Free Trade Agreement, Mexican and Canadian officials said.

There is a belief in the market that progress on autos between the United States and Mexico will bring a NAFTA deal one step closer, said Mark Chandler, head of Canadian fixed income and currency strategy at RBC Capital Markets.

Mexico and Canada insist on NAFTA as a three-way deal

  Mexico and Canada insist on NAFTA as a three-way deal Canadian and Mexican officials insisted on Wednesday that the North American Free Trade Agreement remain a trilateral pact and reiterated their opposition to U.S. calls for a so-called "sunset clause" that could end the deal after five years. After a meeting in Mexico City, Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo said they remained optimistic about negotiations to revamp the 24-year-old trade pact. Talks began last August but stalled in the run-up to the Mexican presidential election. That was due, at least in part, to U.S.

TORONTO (Reuters) - The Canadian dollar rose to a nearly seven - week high against its U.S. counterpart on Tuesday as investors Chances of another hike in September climbed to one in four from less than 20 percent before the economic Analysts see signs Caterpillar's growth is slowing.

TORONTO (Reuters) - The Canadian dollar weakened to its lowest this year against the greenback on Wednesday as worries of a U.S. NAFTA withdrawal tempered bets that the Bank of Canada will raise interest rates next week . They had climbed to nearly 90 percent after much

"Over the last few days that's what has helped the Canadian dollar a little bit at the margin."

a close up of a logo: FILE PHOTO: A Canadian dollar coin, commonly known as the © REUTERS/Mark Blinch/File Photo FILE PHOTO: A Canadian dollar coin, commonly known as the "Loonie", is pictured in this illustration picture taken in Toronto

The Fed kept interest rates unchanged but characterized the economy as strong, keeping the central bank on track to increase borrowing costs in September.

At 3:24 p.m. EDT (1924 GMT), the Canadian dollar (CAD=D4) was trading 0.1 percent higher at C$1.2996 to the greenback, or 76.95 U.S. cents. The currency touched its strongest since June 14 at C$1.2975.

The modest gain for the loonie came as data showed that the pace of growth in Canada's manufacturing sector eased in July but remained at a robust level. The IHS Markit Canada Manufacturing Purchasing Managers' index (PMI) dipped to a seasonally adjusted 56.9 last month from a survey-record high of 57.1 in June.

Canadian dollar holds on to this week's gains after robust U.S. data

  Canadian dollar holds on to this week's gains after robust U.S. data Canadian dollar holds on to this week's gains after robust U.S. dataAt 4 p.m. EDT (2000 GMT), the Canadian dollar (CAD=D4) was trading 0.1 percent higher at C$1.3061 to the greenback, or 76.56 U.S. cents.

The Canadian dollar strengthened to a seven - week high against its U.S. counterpart on Tuesday as higher oil and stock prices signaled easing investor concerns about an escalating U.S.-China trade row.

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"The general level of activity is very good," Chandler said. "It (the PMI) has a very good correlation with GDP."

Economists have said that second-quarter economic growth was likely to come in at 3.0 percent on an annualized basis, just above the Bank of Canada's 2.8 percent forecast.

Money markets expect the central bank to hike interest rates once more this year. (BOCWATCH)

The price of oil, one of Canada's major exports, was pressured by a surprise increase in U.S. crude stockpiles. U.S. crude oil futures (CLc1) settled 1.6 percent lower at $67.66 a barrel.

Canadian government bond prices were lower across a steeper yield curve. The 10-year (CA10YT=RR) declined 58 Canadian cents to yield 2.378 percent, its highest since May 25.

The gap between the 10-year yield and its U.S. equivalent narrowed by 2.8 basis points to a spread of 62.5 basis points in favor of the U.S. bond.

(Reporting by Fergal Smith; editing by Jonathan Oatis)

Trump threatens auto tariffs if trade talks fail .
Donald Trump launched a fresh auto-tariff threat against Canada late Friday at a time when Ottawa finds itself in a holding pattern on NAFTA negotiations as it awaits the completion of one-on-one talks between the United States and Mexico. In a tweet that appeared to reference NAFTA's renegotiation, the U.S. president said the "deal with Mexico is coming along nicely" and that "Canada must wait."Trump then sent a warning to Ottawa: "Their Tariffs and Trade Barriers are far too high. Will tax cars if we can't make a deal!"Bilateral NAFTA negotiations between the U.S.

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