Speedy Renegotiation For NAFTA
The National Bank of Canada | Apr 27, 2017 08:59AM ET
The correction continued yesterday for the Canadian dollar, which is the worst performing G10 currency against the U.S. dollar since the start of April! Difficulties with energy prices, tweets from Donald Trump, the upcoming NAFTA renegotiation and fears of an overheated Canadian real estate sector are driving investors to opt for caution. There is also a great deal of uncertainty surrounding the draft tax reforms put forward yesterday by President Donald Trump, hinting at a substantial cut in the corporate tax rate.
Yesterday evening, Donald Trump spoke with Canadian and Mexican officials and they committed to quickly renegotiate the North American Free Trade Agreement. Over the course of the day yesterday, there had been rumours that President Trump was considering pulling out of the treaty.
On the economic front, we will be keeping an eye on Durable Goods Orders and Initial Jobless Claims in the United States at 8:30 this morning. Investors should also prepare for a hefty dose of volatility tomorrow as data on Canadian and U.S. economic growth are released.
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