Canada and US racing towards deadline
Political deadlines are often fuzzy but Canada and the US appear to be working towards some major compromises and a NAFTA deal.
The US appears to be willing to give up demands to drop independent dispute resolution panels if it can have greater access to the Canadian dairy market. Other issues related to patents and cultural protections are less clear.
The White House's Peter Navarro said "everybody's speaking in good faith right now as we speak," on Fox Sunday. "There are several sticking points," he added.
What's increasingly likely as the minutes tick by is that the FX market will open with a deal not yet completed. It will be interesting to see how far the Canadian dollar falls.
Most news reports say the issues that are outstanding can be breached and there is an optimistic tone, so there could be an opportunity to buy the Canadian dollar if liquidity is ample and if it hasn't moved to far.
"Nearly all of the substantive work is finished, with a handful of details being ironed out, the sources said," the Globe&Mail reports.
For me, anything above 1.2850 is a good spot to sell because the pair's likely to fall further if a deal gets done.
