The NAFTA/USMCA deal optimism is providing a tailwind for the loonie
Price looks to be attempting to break the daily support region around 1.2820 and touches a low of 1.2807 on the day. Sellers are now aiming towards the 1.2800 handle and if that fails to hold the next support region comes around 1.2720-30.
The loonie remains underpinned on the day on the back of a deal between US, Mexico, and Canada and that in turn is helping to underpin the Mexican peso and emerging markets against the greenback.
Currencies are rather mixed on the day with different themes dominating the developments of the major currencies so far today. But the main news is that of a NAFTA/USMCA deal and that has led to the loonie being the top performer.
And I expect things to continue in the same manner into US trading as well.