(19 SEPTEMBER 2018)DAILY MARKET BRIEF 1:Stronger loonie as NAFTA talks resume

The Canadian dollar continues to strengthen, pushed by higher expectations of North American Free Trade talks. USD/CAD is trading lower at 1.2948 and weakening since the beginning of the week (-0.68%). The pair is expected to approach the 1.2930 range in the short-term. Renegotiations are starting on a positive note today, as Canada’s Prime Minister Justin Trudeau hinted that a win-win agreement was likely. Continued US-China spats are CAD positive, as they push US President Trump to avoid additional trade confrontations. Still, time is ticking. An agreement must be signed by end September.

By Vincent Mivelaz