BEFORE THE BELL: Loonie pulled both ways between NAFTA worries and oil rally
Canada’s currency is stuck in a battle between NAFTA worries and a crude price rally. The Loonie is down at 77.14 cents US this morning, with experts suggesting it’s an indicator of investor feelings on the current NAFTA negotiations.
Analysts believe the trade talks may not reach a resolution by the October 1st deadline set by US congress as there are still too many sticking points on both sides.
But, crude prices are gaining as OPEC has decided to let stocks drain out a bit, despite a dry up of Iranian crude due to US sanctions. The price of US crude is up to 72.52 a barrel.
The Dow may get hit again today as investors continue to fret over the trade war escalation between the US and China. Beijing says it has no interest in sitting down with Washington while the US holds a knife to its neck.