While equities continue to move higher, most major currencies are in a holding pattern waiting for the trade agreement to be actually signed. Both sides have said they prepared to sign, but a lot can happen between now and then. China however has pledged to increase purchases of U.S. car, aircraft and energy products as a sign of goodwill.
Meanwhile, France, Britain and Germany have formally triggered the dispute mechanism in Iran’s nuclear deal on Tuesday, the strongest step the Europeans have taken so far to enforce an agreement that requires Iran to curb its nuclear program. Iran has gradually rolled back its commitments under the accord since the United States quit. Tehran argues that it has the right to do so because of Washington’s actions. To trigger the dispute mechanism, the three European countries notified the European Union, which acts as guarantor of the agreement. EU foreign policy chief Joseph Borrell said the aim was not to reimpose sanctions but to ensure compliance. The USDCAD remains unchanged and will likely remain range bound for the next few days.