# Canada, Mexico, and the USMCA - Marc to Market  Marc Chandler on Global FX and Capital Markets

> The U.S. dollar closed above CAD1.35 for the first time since January, though the loonie is still the strongest major currency year-to-date. The Mexican peso has gained 2.6% in 2019, and the S&P 500 has fallen nearly 6% in May on China trade tensions. Oil slipped toward a two-month low below $57 a barrel.

- Date: 2019-05-29 · published 2019-05-29T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/59323-canada-mexico-and-the-usmca-marc-to-market-marc-chandler-on-global-fx-and
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Canadian Dollar (CAD per USD)](https://feedsoft.ai/c/USDCAD.md), [Mexican Peso (MXN per USD)](https://feedsoft.ai/c/USDMXN.md)

## Why it matters

Risk-off moves tied to trade tensions weigh on crude and on commodity-linked currencies, which affects the cost of Canadian and Mexican commodity exports.

## Read by commodity

- WTI: bearish ▼
- USDCAD: bullish ▲
- USDMXN: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WTI | 2019-05-30 | 1 | -4.5% | -4.2 | Notes oil slipping toward a two-month low below $57 with equities sliding on China trade tensions, consistent with the demand-fear selloff. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2021-01-29 | [Global Market Insights: Commodities’ risks; USD and CAD unchanged \| article](https://feedsoft.ai/events/49371-global-market-insights-commodities-risks-usd-and-cad-unchanged-article.md) | +7.5% | +17.7% |
| WTI | 2022-10-31 | [Canadian dollar slips to six-day low as oil prices fall - The Globe and Mail](https://feedsoft.ai/events/39347-canadian-dollar-slips-to-six-day-low-as-oil-prices-fall-the-globe-and-mail.md) | +5.4% | -12.2% |
| WTI | 2024-01-31 | [Canadian dollar weakens as Fed rate signal offsets GDP gain - The Globe and Mail](https://feedsoft.ai/events/32333-canadian-dollar-weakens-as-fed-rate-signal-offsets-gdp-gain-the-globe-and-mail.md) | -6.0% | +1.3% |
| WTI | 2021-08-31 | [Canadian dollar steadies after ‘limited’ reaction to GDP miss - The Globe and Mail](https://feedsoft.ai/events/45789-canadian-dollar-steadies-after-limited-reaction-to-gdp-miss-the-globe-and-mail.md) | -1.2% | +8.9% |
| WTI | 2020-02-03 | [Canadian dollar slides to two-month low as China virus hits oil demand - The Globe and Mail](https://feedsoft.ai/events/54810-canadian-dollar-slides-to-two-month-low-as-china-virus-hits-oil-demand-the.md) | -2.4% | -9.3% |

## Sources

- marctomarket.com: https://www.marctomarket.com/2019/05/canada-mexico-and-usmca.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.