More optimism around NAFTA
USD/CAD is flirting with a break below 1.30 for the first time since June 18. The catalyst is NAFTA optimism.
US Commerce Secretary Wilbur Ross said today that "our immediate, most close-to-completion negotiations are with NAFTA, particularly Mexico," he said at a Chamber of Commerce event.
The comment echoes many US officials in the past week.
To me, it's a bit bizarre how aggressively White House officials are stoking expectations for a NAFTA deal while Mexican and Canadian negotiators aren't saying the same thing. It's almost like a coordinated effort. Like why is Kevin Hassett even talking about it?
Meanwhile there are things like the sunset clause which remain huge sticking points and unresolved.
I can't think of a reason why the White House would want to send such positive signals with some obvious hurdles still remaining, and with no corroboration but the risk is that it's some kind of misguided communications strategy setting up for something else.
Or take it at face value, the market certainly is.
