Despite French President Macron’s attempts to dissuade President Trump pulling out the US from the Iran nuclear deal, Trump seems poised to withdraw. The possibility of a standoff in the Middle East has supported rising oil prices with WTI moving above $68.50.
The governing council of the ECB decided that the interest rate on main refinancing operations will remain unchanged at 0.00%. Investors’ eyes have moved to ECB President Draghi and his outlook, where he has reaffirmed an “ultra-easy” monetary policy for the euro-area economy.
Foreign Affairs Minister Chrystia Freeland and her American counterpart in the NAFTA talks had a “fairly forceful” exchange of views Tuesday over the American side’s demand for a sunset clause. Canada and Mexico do not support the demand; both countries say it would create economic instability. Chief negotiators have been meeting in Washington around the clock for nearly four weeks straight as all three countries work to reach an agreement in principle in the near future.
Technicals have pointed to the Canadian dollar being oversold against the USD and due for a corrective rebound, this coming despite a key deadline for a NAFTA fast approaching, and certainty over the agreement is far from reliable.