The USDCAD continued trading within the short-term range of the last sessions, but the CAD managed to close 0.12% stronger versus the USD at 1.3155.
The USD ended the day relatively unchanged versus a basket of major currencies, but commodities and resource-based currencies performed well against the USD amid China’s fiscal stimulus plan. The PBOC also mentioned measures to ease monetary policy and ramp up fiscal policy. China did fall short of announcing a big stimulus package, but nevertheless, the direction was clear, and the market responded accordingly. Chinese equities were boosted by approximately 5% since Friday with commodity prices also benefiting.
With a very light week on the economic data front for Canada, market participants are paying close attention to resuming NAFTA negotiations. Foreign Affairs Minister Chrystina Freeland is in Mexico meeting with outgoing and incoming counterparts after talks were stalled for the July 1st Mexican Presidential elections. Trump has threatened to scrap NAFTA and put together singular deals for Canada and Mexico, also saying that he would prioritize a Mexican agreement first.