CAD: NAFTA Flying Under The Radar; What’s Next? – Credit Agricole

Credit Agricole CIB FX Strategy Research notes that the NAFTA talks are off to a difficult start as the US delegation reportedly requested to remove the chapter 19 dispute settlement provisions that are a key issue for Canada.

"Furthermore, President Trump has put verbal pressure on the negotiations by publicly expressing doubts as to whether an agreement could be reached.

NAFTA headlines are flying under the market radar because the market still believes that all sides have a stake in reaching an agreement, especially given the high level of interconnectedness and integrated supply chains between the three economies.

"We continue to forecast USD/CAD at 1.25 by year-end but see an upward correction over the next one to two months," CACAIB argues.

Source: Credit Agricole CIB ResearchOriginal Article