- August 29, 2018
- Posted by: Joey Benedid
- Category: Market News
A new North American trade deal appears to be near the finish line, as the US has set a strict deadline on Friday for a deal to be completed. Time will not be a friend to the negotiators as Canada just joined the table yesterday afternoon. The markets are still confident that a compromise can be reached, providing stability to CAD and MXN. Some analysts are skeptical that a new trade agreement will bring jobs back to the US like Trump had originally heralded. The Dollar has made up some ground on CAD and MXN, but is still under pressure with trade negotiations in the final stretch.
EUR slipped overnight with public deficit concerns out of Italy weighing on overall Eurozone GDP targets. The Pound remains under pressure from Brexit related noise. May’s comments yesterday downplaying a no-deal Brexit did not play well with the markets as GBP fell lower against a firmer Dollar.
US GDP (4.2% vs 4.0%) beat expectations this morning, but traders appear to be more focused on NAFTA negotiations as rates remain unchanged following the release. Tomorrow we’ll see German employment data, US Personal Consumption Expenditure (2.0% vs 1.9%) and CAN GDP (3.1% vs 1.3%), with Eurozone CPI rounding out the week on Friday. Short term support and resistance is 1.2865 and 1.3010 respectively, with RSI at 49 and the 200-day moving average residing at 1.2843.