Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Please try again

Live Webinar Events


Economic Calendar Events


Notify me about

Live Webinar Events
Economic Calendar Events






More View More
Canadian Dollar Up on NAFTA Hopes, NZ Dollar Down Before RBNZ

Canadian Dollar Up on NAFTA Hopes, NZ Dollar Down Before RBNZ

What's on this page

Talking Points:

The Canadian Dollar continued to push higher, extending yesterday’s advance. That followed a report from Globe and Mail claiming that the Trump administration has dropped the demand that cars imported from NAFTA countries contain at least 50 percent US-made content. Markets read that to signal a possible breakthrough in renegotiation of the free trade pact.

Meanwhile, the New Zealand Dollar fell ahead of the upcoming RBNZ rate decision. The target cash rate is overwhelmingly expected to remain unchanged but a recent run of disappointing economic data has stoked speculation about a dovish turn in official rhetoric, pushing policy normalization further out into the future. As it stands, futures pricing implies a hike in the third quarter of 2019.

The US Dollar corrected slightly lower in Asia Pacific trade having returned to the offensive in the prior session as markets position for the upcoming FOMC monetary policy announcement. The greenback has trended higher since the middle of last week amid speculation that the US central bank will signal acceleration of its rate hike cycle.

The markets have priced in December’s outlook update calling for three 25bps rate increases in 2018. Investors’ outlook for the subsequent two years still trails the central bank’s projection by 50-75bps however. An upgrade of policymakers’ forecasts echoing a recent hawkish turn in official rhetoric and a confident tone from Chair Powell at the post-meeting presser may push the benchmark currency still higher.

Join our Fed rate decision webinar and follow its impact on FX markets live!

Asia Pacific Trading Session

European Trading Session

** All times listed in GMT. See the full economic calendar here.


--- Written by Ilya Spivak, Currency Strategist for

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

To receive Ilya's analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.