CAD has been one of the year’s worst performers, losing against all major currencies. However I think it’s time start looking for reversals on the “Loonie” pairs.
One of the factors that has been dragging the currency down is the political and trade uncertainty, regarding the end of the NAFTA deal and the US tariffs on steel and aluminium. However, last week we came to know that Canada may be given exemptions on the US Tariffs, which is definitely positive for the country, considering that the US are their largest trade partner and even though we still have the NAFTA deal to “clear up”, this could surely ease some of the tensions that have been building lately.
Having this in mind, I drew some scenarios on the the USD/CAD pair for the week: