FX Action: USD-CAD has retreated to the lower 1.25s
FX Action: USD-CAD has retreated to the lower 1.25s after logging a high-for-the-year at 1.2590 yesterday. A broader retreat in the U.S. dollar coupled with Loonie-supporting reports of a possible breakthrough in NAFTA negotiations, have weighted on USD-CAD. A lot of focus will remain on the NAFTA negotiations, with uncertainty about this having curtailed the Canadian dollar from rallying amid the coursing surge in oil prices and expectations for the BoC to hike interest rates by 25 bp next Wednesday. Ahead into 2018, how the U.S. dollar benefits from the expected tax overhaul, how oil prices evolve, how NAFTA re-negotiatios go, and how the BoC proceeds with its slow-go tightening cycle will be dominant themes for USD-CAD.