Loonie Higher on NAFTA Hopes

The US Dollar edged lower versus the Canadian Dollar during Monday trade in Asia as investors await the upcoming NAFTA deadline. The US and Canada are attempting to rework the agreement in the hours before the deadline, but specific issues remain unresolved. Those issues include US access to the Canadian dairy market and American tariffs. Failure of the Canadian government to accept the updated Agreement could result in Canada's removal from the tri-nation pact. A deal with Mexico has already been struck.

 

As reported at 10:52 am (JST) in Tokyo, the USD/CAD was trading at C$1.2836, down 0.49%; the pair earlier hit a low of C$1.28338 while the peak is recorded at C$1.26493. The EUR/CAD was trading at C$1.4883, down 0.61% while the GBP/CAD was trading lower at C$1.6722, down 0.52%.

 

Euro Weighed by Italy Budget Worries

 

In the Eurozone, the Euro has been under some pressure as FX traders worry about the increase in Italy's deficit after the government there announced the approval of a budget that was higher than anticipated. The EUR/USD was trading at $1.16, down 0.07% and off the earlier low of $1.15954. On Friday, the pair hit a 2-week trough at $1.1569 to close out the week with a 1.2% loss against the greenback.

Barbara Zigah is a freelance journalist living in Ghana, who specializes in Forex-related content; her online work has appeared in the IB Times, NASDAQ, Benzinga, and Seeking Alpha.