President Trump is considering splitting the NAFTA talks
USD/CAD continues to press the north side with attempts on 1.3000 so far today, producing limited, if any results. We have just heard comments from the White House Economic adviser Kudlow that President Trump is considering splitting the NAFTA talks, with a view to bilateral deals with Canada and Mexico.
This clearly spooked USD/CAD bids at the highs as traders continue to test the resolve of sellers on the upper side. 1.2950 or so has contained the knee-jerk pullback, with some fresh USD demand emerging and giving all USD rates a boost. The market has pushed straight back up again, but we note a very strong band of selling interest in the 1.3000-1.3100 area.