The revisions to the North American Free Trade Agreement were critical to helping the Canadian dollar experience a rally in value. The Canadian dollar has risen versus the American dollar to help improve upon its value. The increase in the value has helped to stabilize the currency, although the possible added growth in the American market may influence how the currency works.
The CAD/USD pair was listed at 0.782 at the end of trading on Tuesday. The pair had been stable at 0.775 for a few days prior to its rise. The value is also an increase over the 0.760 value that the currency had been at during the early part of September. The change marks one of the best movements for the currency.
The Canadian dollar had been at risk of harm due to ongoing trade struggles with the United States. These include various changes caused by ongoing actions carried out by the United States towards other countries in trade. The ongoing addition of assorted tariffs from the United States has caused Canada and other countries to produce their own tariffs against the United States on various items.
The Canadian dollar had been at 0.80 versus the American dollar earlier in the year, but the currency has been shaking around due to the changes in the market surrounding trade concerns. Currencies of countries that depend heavily on trade, particularly South Korea and Mexico, have declined in value as a result of the concerns in the market.
Part of the Deal
A vital part of the rise of the Canadian dollar came from the increase in some of the points that came through the agreement between Canada and the United States. Canada has received added access to American dairy farms as part of the deal. Also, the number of automobile exports that will go from Canada into the United States have been capped at a specific value. This ensures that the American car manufacturing jobs will not be at risk of being lost and should improve the general economy.
Future Points For the Canadian Dollar
There is still a potential for the Canadian dollar to continue to increase in value as investors work with the currency to keep from losing more in other forex investments. As other countries are at risk of being hurt by international trade changes, particularly tariff-based changes, the Canadian dollar appears to be more stable. There is also a possibility for the Mexican peso to grow in value as the new agreement between Mexico, Canada and the United States has helped to improve relations, although it is uncertain as to what may develop in the future surrounding the program.
There is a chance for the CAD/USD pair to change based on the upcoming United States jobs report coming this week. The report will list details on the possible jobs that are coming about in the country and how well the market is growing. The chances for the pair to rise may be strong, although the value of the Canadian dollar could be influenced by any changes in the American dollar.Advertisement