TORONTO (Reuters) – The Canadian dollar strengthened against its U.S. counterpart on Monday, gravitating toward the middle of this year’s range ahead of the resumption of talks to renegotiate NAFTA and as investors weighed domestic data showing an increase in wholesale trade.
The value of Canadian wholesale trade rose for the second month in a row in November on broad gains across sectors, data from Statistics Canada showed. The 0.7 percent increase was shy of economists’ forecasts for a 1 percent gain, while volumes rose 0.5 percent.
Round - Talks - Free - Trade - Agreement
The sixth and penultimate round of talks on renegotiating the North American Free Trade Agreement among Canada, the United States and Mexico is scheduled to take place in Montreal from Tuesday to next Monday.
The future of NAFTA was the most significant downside risk the economy faced, the Bank of Canada said last week as it raised its benchmark interest rate, as expected, but tempered expectations for additional increases over the coming months.
Everybody - NAFTA - Inflation - End - Week
“Everybody is waiting to see what happens with NAFTA and with inflation at the end of the week,” said Alvise Marino, a foreign exchange strategist at Credit Suisse in New York.
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