USD/CAD retreats as Canadian officials reject bilateral talks on NAFTA

• USD/CAD continues to decline from 2-month highs, rejected again from above 1.3000.
• A Canadian official said they will continue to negotiate NAFTA, “a trilateral agreement”.

The USD/CAD pair continued to correct lower during the American session after making a run earlier today to 1.3065, the highest intraday level since March 21. Recently dropped to 1.2967.

USD/CAD was still down for the day but significantly off daily highs. From the top retreated almost a hundred pips, pulling back under 1.3000.

The spike took place following comments from White House economic adviser, Larry Kudlow, who mentioned that Trump is seriously considering a shift in NAFTA negotiations contemplating separate deals with Mexico and Canada. Recently a Canadian government official said that NAFTA is a trilateral agreement and they will continue negotiations.

USD/CAD Technical levels

The 1.3000 area is again a resistance level to watch followed by 1.3045 (May 29 high) and 1.3065 (Jun 5 high). On the downside, supports might lie at 1.2945, 1.2915 (Jun 5 low) and 1.2895 (Jun 4 low).