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Mazen Issa, Senior FX Strategist at TD Securities suggests that the CAD momentum is likely to carry the day after the US and Canada reached a last minute agreement to salvage the trilateral trade pact (from NAFTA to USMCA), even though much may already be in the CAD price.

Key Quotes

“Reduced trade uncertainty may help to sharpen focus on cross asset developments amid improving risk appetite. Note that a well-priced BOC curve presents some limitations however. Longer-term, the impact on FDI and Congress make-up post mid-terms may hold more sway for CAD.”