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Greenback Surges on Dashed NAFTA Hopes and Disappointing Canadian Data
Published May 18, 2018
Trump’s chief NAFTA negotiator said that the US, Canada, and Mexico are “nowhere near close to a deal” which sent USD soaring across the board (with a few notable exceptions, including USD/JPY). US trade representative Lighthizer’s comment flies in the face of Trudeau’s publicly optimistic statement earlier that same day.
USD crossed above the 1.29 mark this morning on the NAFTA fallout, combined with disappointing Canadian data showing headline Consumer Price Inflation having slowed in April.
Month-over-month Canadian Retail Sales also missed, coming in at -0.2% versus an expected +0.5%.
US/China trade talks continue today in DC, though China is disputing reports suggesting the PRC was prepared to reduce its $200 billion annual trade surplus with the United States; the Chinese Foreign Ministry stated they were unaware of any such concessions. Trump himself then expressed doubts that the trade talks would be successful.
Oil prices are mixed this morning, with WTI crude down 0.18% to $71.36 and Brent crude up 0.21% to $79.47 at time of writing.