Canada economy: The Canadian dollar (CAD) trend is also neutral, but if the NAFTA negotiations trend (North American Free Trade Agreement) Interrupted and deteriorate, the Canadian dollar is a downtrend.

The two main factors driving the CAD are NAFTA talks and oil prices, which both are currently on the opposite path. The Negotiations have had a negative impact on the CAD, while oil price growth is supporting the CAD. Negotiations between the US and Canada have not yet made a progress, and Donald Trump has repeatedly threatened to lift the deal. A decision that could have a negative impact on the economies of Canada and Mexico. Any reduction in Canadian economic growth may limit the ability of the central bank to raise interest rates, while the prices in the housing market are also rising rapidly, raising the risk of bubble prices in the housing sector. On October 25, the Bank of Canada will hold a meeting on monetary policy. Meanwhile, market expectations have fallen from the third rise of 0.25 percent in interest rates.

On the other hand, oil price growth supports CAD. However, as the two-year yield rate bonds of the US are traded near the peak of recent decade of 1.52%, it is likely that the difference between the US and Canadian yields will be at the benefit of USDCAD. On Friday, Canada’s inflation data will also be released. Since we are close to the next Central Bank meeting, these inflation data can have a great impact on market interest rates expectations and choose the USDCAD short-term trend.