The leaders of the United States and Canada expressed optimism on Wednesday that they could reach new NAFTA deal by a Friday deadline as negotiators prepared to talk through the night, although Canada warned that several tricky issues remained. Under pressure, Canada re-joined the talks to modernize the 24-year-old North American Free Trade Agreement after Mexico and the United States announced a bilateral deal on Monday. U.S. shares extended their rally on Wednesday, with the S&P 500 and the Nasdaq hitting record highs for a fourth straight session as technology stocks pushed indexes higher and promising NAFTA negotiations boosted investor confidence.
In currencies GBPUSD rose to 1.3089 as fears of a ‘hard Brexit’ eased after the European Union’s chief exit negotiator signalled an accommodative stance towards London in ongoing talks. EURUSD was a shade lower at $1.1699 after edging up 0.1 percent the previous day.
In commodity markets, Brent crude futures rose 0.1 percent to $77.20 per barrel and U.S. crude futures climbed 0.2 percent to $69.64 per barrel. Oil contracts had risen more than 1 percent on Wednesday, supported by a drawdown in U.S. crude and gasoline stocks and as U.S. sanctions reduced Iranian crude shipments. Gold price fell earlier and is set to record the fifth monthly fall, while the dollar also edged lower on expectations of a higher interest rate.
Economic calendar contains a plethora of important economic data to be announced, which can provide volatility and price action in the forex market. German Unemployment Rate and the Inflation Rate, the Business Confidence in the Eurozone, the GDP Growth Rate in Canada for the second quarter, the Personal Income and Spending in US and the Unemployment Rate in Japan. With all this economic data to released moderate to high volatility should be expected for the Euro, the Canadian Dollar, the US Dollar and the Japanese Yen.