ICM, the leading London-based FX and CFDs provider, reported that the United States and Canada reached a deal to replace the North American Free Trade Agreement. Following the positive news, the Canadian dollar opened higher against rivals, and the U.S. stock futures rallied.
Major U.S. stock futures rose as a senior U.S. administration official announced that the United States and Canada reached a new trade deal to replace the old North America Free Trade Agreement. The deal will provide more market access for U.S. dairy farmers, and protect Canada from possible U.S. autos tariffs. As per ICM trading platform, the Dow Jones futures rose 0.7% to 26664, the SPX500 futures gained 0.5% to 2935, and the Nasdaq Futures climbed 0.6% to 7713. The trade spat between Canada and the United States weighed on investor’s sentiment earlier throughout the year. However, by reaching the new trilateral deal named as USMCA (United States-Mexico-Canada Agreement), the positive bias should be restored.
ICM highlighted that the Canadian dollar strengthened across the board following the news. The Loonie found support on Friday following better-than-expected GDP figures and continued higher on the news of a new trade deal. As per ICM trading platform, the Canadian dollar rose to a four-month high against the United States dollar where the USDCAD traded at a low of 1.2813.
The dollar index which measures the greenback against a basket of major currencies ended higher for the third consecutive day, supported by an interest rate hike and solid economic data. DXY tested a three-week high of 95.37 as European currencies tumbled. As per ICM trading platform, the EURUSD dropped to a low of $1.1570, and the GBPUSD traded near the $1.30 level for the first time in three weeks. Moreover, the dollar advanced to a ten-month high against the Japanese Yen where the USDJPY crossed the 114 level.
Gold prices ended lower last week, weighed down by higher U.S. Treasury yields and a stronger dollar. As per ICM trading platform, the gold ounce traded at a six-week low of $1180 whereas the silver ounce settled at a one-month high of $14.61. The XAU/XAG ratio dropped to a one-month low of 81.01.
Oil prices continued higher, supported by the looming U.S. sanctions on Iran’s oil exports. As per ICM trading platform, the Brent futures rose to a four-year high of $83.38 per barrel, and the West Texas Intermediate crude futures traded at a ten-week high of $73.69 per barrel.