Morning Commentary & Currency Insights – April 4, 2018

The Canadian dollar continued its NAFTA based rally breaking below 1.2800 against the U.S. dollar yesterday and in the overnight session as well.  With the White House looking for “a quick win” by aiming to have an agreement on a provisional pact as early as next week it would be considered a political victory for them as we head into midterm elections in Congress that will shape the rest of the term.  With a positive print of +20K jobs anticipated for Friday’s Canadian employment data the prospect of a USD rally should be limited to the mid 1.28 area ahead of the release.  Immediate targets on the downside are now 1.2727 and 1.2683.