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USD Climbs as Oil Falls; NAFTA Deal Still Being Negotiated
Published April 25, 2018
USD continues to strengthen after the 10-year US Treasury yield touched 3.00% for the first time since 2014. Expectations are for a bullish greenback against the euro as well, ahead of tomorrow’s ECB meeting.
NAFTA deals are said to be “moving along”, which seems to imply that a deal is not as close to completion as markets had hoped. Meetings continue today in Washington with both Mexican Economy Minister Ildefonso Guajardo and Canadian Foreign Affairs Minister Chrystia Freeland in attendance.
At 4:30PM EST today we have Bank of Canada’s Poloz and Wilkins on the speaker roster, though expectations are that they will have nothing new to say.
The UK government faces a motion tomorrow in the House of Commons called by senior MPs on the UK’s future participation in the EU customs union. The government is being challenged to alter its position to seek an effective customs union with the EU27 after Brexit.
Oil prices dropped to session lows after President Donald Trump signaled that the United States and France are close to reaching an agreement to preserve the Iran nuclear deal. Oil price declines are perhaps being moderated by reports of supply cuts led by OPEC, and the potential of renewed US sanctions against Iran.