USMCA ratification in play
Ultimately the USMCA trade deal will get done but Congress is running out of time to do it before year end. Mexican Senators just accepted the latest changes and Mexico's President says he "respectfully requests" that House Speaker Pelosi makes a decision on the deal.
USD/CAD is lower today and under some fresh pressure as oil prices mount a recovery. WTI crude is trading at $58.91 after falling as low as $58.23.
That has pushed USD/CAD into the 'gap' from Friday's soft Canadian jobs report. While the numbers are getting plenty of attention, the reality is that the Canadian employment report is very volatile and jobs growth has been strong this year. Perhaps more importantly, wage growth remains strong.
I don't see the Bank of Canada changing gears on this data and I suspect we see 1.3170 again before 1.3320.
That said, it's a huge week for economic news and data with a trade war deadline looming so I don't like the idea of betting too heavily on anything but headlines.
