Canadian Economy Grows at Slower Pace | NAFTA Deal Imminent
Published August 30, 2018
The Canadian dollar extended its previous fall against its US counterpart on Thursday as data showed the Canadian economy grew at a slower pace than market expectations in June. The loonie touched a session low shortly after the latest data on Canada’s gross domestic product.
President Trump and Prime Minister Trudeau have signaled a new tri-party North American trade deal could be reached ahead of tomorrow’s deadline. The US is pressuring Canada to strike a deal by week’s end, which is when the Trump Administration hopes to inform Congress that it intends to sign a new trade pact to replace NAFTA.
Iran has warned that if it isn’t allowed use the Strait of Hormuz for oil exports, it will halt the movement of all oil out of the region. The Strait serves as strategically important, seeing 30% of all seaborne-traded crude oil every year. West Texas Intermediate for October delivery was at $69.66 this morning.
The Trans Mountain Pipeline faces a major test as the Federal Court decides if the conduit’s long-awaited expansion can advance or be delayed for years. Canada’s Federal Court of Appeal is scheduled to decide on the legal challenge; the judgment is expected to be released at 10:30am EST in Ottawa.