Trump puts the squeeze on Canada
Last weekend it was Saudi Arabia, this weekend it's Trump.
Canada can't catch a break in diplomatic relations. USD/CAD jumped at the open last week after Saudi Arabia recalled its ambassador and it continued higher when top officials ordered the divesture of Canadian financial assets "at any cost".
Now Trump is threatening to tax autos if there's no NAFTA deal.
With the US dollar already sizzling, it won't take much to spark a further rally in USD/CAD.
When all is said and done, I think there will be a NAFTA deal in short order but I don't think anyone on either side of Trump trade can be too confident about any outcome.
