USD/CAD higher on the headlines
USD/CAD rose 80 pips on a Reuters report that Canada and the US are squabbling over the final text.
Lovely.
Canada is said to be pushing back at US changes to the text.
"Some of the stuff they (the Americans) have been putting forward is not at all what we agreed to," the source told Reuters.
The changes may have to be referred to the ministerial level before it gets resolved.
The sources said he/she didn't believe the changes would wreck the deal but it shows that it's not all smooth sailing. If the ratification drags on, House Democrats could also get involved and that would be another crack in the dam.
An example in the report was that the province of British Columbia was supposed to allow international wines into its stores. Ottawa is upset because the US is trying to expand that to other provinces. The text of the dairy agreement was also problematic.
Again, this doesn't read like a big problem and certainly not one that justifies the drop in CAD.
