Donald Trump invited India, Russia, Australia, and South Korea to the G-7 meeting. Canadian Prime Minister Justin Trudeau said on Monday that Russia will not be included in the upcoming meeting of Group of Seven nations (G-7),  after knowing that the US President Donald Trump revealed that he has plans to invite Russia. The Trump administration and Mexican diplomats signaled talks on the United States-Mexico-Canada Agreement (USMCA) but seems that Canada will not turn up for the talks. The news increases doubts on the much-championed trade deal by US President Donald Trump, creating plays negative for the Republican leaders’ Presidential election.

Canadian Finance Minister Bill Morneau will deliver a “fiscal snapshot” on Wednesday that will outline the current balance sheet and may give an idea of the money the government is setting aside for the future. As the economy recovers, some fiscal support measures, which are expected to boost the budget deficit sharply, could be relaxed and will be replaced by incentives meant to get people back to work and measures to boost economic growth, economists said.

Craig Wright, chief economist at Royal Bank of Canada said that “The only solution to these large deficits is growth, so we need a transition to a pro-growth agenda,”. The IMF expects Canada’s economy to contract by 8.4% this year. Ottawa is already rolling out more than C$150 billion in direct economic aid, including payments to workers impacted by COVID-19. “We have to make sure that government spending is calibrated to the economy of the future rather than the economy of the past,” Wright said. All these updates show the economic recovery in Canada.

US continues to record high cases of COVID-19 figures with situations in Texas and Florida getting worse on each passing day. The updates not only stops the economic restart plans but also shows the Trump administration’s failure to tame the pandemic. Even so, President Trump tweeted to signal the increase in testing as the reason behind the surge in the virus figures.

USD/CAD 4 Hours Chart:

Support: 1.3534 (S1), 1.3520 (S2), 1.3496 (S3).

Resistance: 1.3571 (R1), 1.3595 (R2), 1.3609 (R3).

All these catalysts create optimism among investors for loonie and pessimism for dollar we expect a bearish trend for the USD/CAD.