Putting Reference in Context
Apparently, this pair looks smooth and less volatile, unlike other major pairs.
Thus, it is important to note down that various long term traders really love to do trading this pair.
Although it has less volatile characteristics, however, one has to be taken into account the importance of Geo-political scenario.
Along with current trade deals namely (NAFTA). The North American Free trade agreement and (USMCA). The United States Mexico Canada Agreement.
It is pertinent to mention that USMCA, is being discussed and debated by 6 presidential candidates in IOWA, USA,
this could take impact on this pair and its volatility could be on horizons.
Senator Elizabeth Warren and Bernie Sanders having opposite directions regarding USMCA.
whereas Warren supports it, however, Sanders is arguably against it by not including the “doable action” regarding climate change pertaining to this USMCA.
Notebelly It is also inculcated that Republican Senators trying to pass on the said trade deal with Canada and Mexico as early as this week.
Before President Trump’s impeachment trial that is kicking off this Thursday.
Whereas there is a division that has appeared over NAFTA AS WELL—–
OIL PLUNGING TAKE ADVERSE INFERENCE!
It is important to understand that oil prices are highly correlated with CAD.
Most recently we have seen plunging in the oil prices due to the de-escalation between the United States and Iran.
Therefore, one must look very vigilant eyes on oil prices.
it also adds up further misery in CAD as the American Petroleum Institute was published its stockpile last Thursday i.e 9th of January, 2019 that show off a build in the inventories.
US-CHINA TARIFF DEAL!
Apparently u.s china’s tariff deal is being dismal.
as new concerns emerge by putting in perceptive from the Us side that it didn’t plan to cut china tariff.
until the November election as part of Risk sentiments.
Being having weighs on u.s dollar thus adversity may be seen on the Canadian dollar.