US drops auto content demand in NAFTA talks
Hopes for a NAFTA deal are looking brighter today after the US reportedly abandoned a demand that all vehicles made in Canada and Mexico for Export to the US contain at least 50% US content.
The story first landed in Asian trading and sent USD/CAD down to 1.3010 but it bounced from the big figure to 1.3050 before embarking on a fresh slide in the past hour or so. It just took out 1.3000 as Bay Street ramps up and has continued down to 1.2983.
There is nothing on the Canadian calendar today so the loonie will be at the whim of the US dollar and the Fed decision, along with any other NAFTA headlines that appear.
What's more important here than the headline is that it appears that the US side is trying to push toward progress, rather than digging in. But note that the headlines came from Canada so it could be a case of political messaging rather than genuine progress.
