Canadian Dollar Declines Against the US Dollar on NAFTA Concerns

The Canadian dollar declined to an almost seven-week low against the U.S. dollar, as uncertainties over the NAFTA deepened.

In a tweet posted on Saturday, U.S. President Donald Trump said there is "no political necessity to keep Canada in the new NAFTA deal," and that Congress "should not interfere" with the negotiations. Last week, the U.S. and Mexico went ahead with a deal without Canada.

There was apparently some expectation last week that Canada would be joining the new deal, but Trump’s latest tweet might have dampened that outlook. With around 75 percent of its exports sent to the United States, Canada’s economy could potentially feel a substantial headwind if a deal is not reached. The U.S. dollar rose to 1.3192 against the Canadian dollar on Tuesday - its highest level since July 20. The greenback later eased to 1.3181.

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Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.