USA economic data - with latest estimates for second-quarter gross domestic product expected on Wednesday - could determine the dollar's further moves.
"It's quite clear that the White House wants Canada to feel the heat of a threatened auto tariff and is going to try to seek some visible concessions from Canada relative to what's in the existing NAFTA deal", he said.
"Canada, we will start negotiations shortly".
"It's a tremendous amount of money and it's a very simple negotiation. A lot of people felt we'd never get here".
Trump invited Ottawa to join what he characterized as American-Mexican trade negotiations, which have stretched through the summer without Canadian officials at the table.
Canada, which is part of NAFTA, is not participating in the announcement.
The political stakes are high for all three countries.
Trump praised the deal at the White House on Monday, saying the new agreement would be "tremendous" for U.S. farmers and workers.
Trader Peter Tuchman works on the floor at the New York Stock Exchange (NYSE) in Manhattan, New York, U.S., August 27, 2018.
Monday's news of the U.S. -Mexico deal had pushed the S&P 500 and Nasdaq indexes to fresh records, and on Tuesday, Europe and Asia followed Wall Street's lead, inching to multi-month highs.
President Donald Trump, right, arrives in the Oval Office for a telephone call with Mexican President Enrique Pena Nieto on August 27, 2018. Congress has to approve it.
"I expressed the importance of them reentering the process with the goal of concluding an agreement this very week", Pena Nieto said on Twitter.
"The big question is what do the Americans want from Canada to reach a trilateral deal", he said.
President Trump welcomes Canadian Prime Minister Justin Trudeau at the White House in Washington, DC.
Several trade analysts points out that under the current U.S. Trade Promotion Authority provisions, Trump hasn't been given the authority to negotiate a two-way deal with Mexico that excludes Canada. Trump has yet to address conflicts he initiated with other trade partners, Colson said.
The deal would require 75 percent of auto content to be made in the NAFTA region, up from the current level of 62.5 percent, a U.S. trade official said. The US-Mex agreement makes it harder for cars to qualify, and in this way takes some of the free trade out of NAFTA. Those manufacturers also would need to use more steel, aluminum and auto parts from local sources. It also would require 40 to 45 percent of auto workers make at least $16 per hour.
President Trump aims to move more auto production back to the U.S. -China spat would reverberate across Asia, "given the region's intricate supply chains and that most of its economies still largely depend on exports", Oxford Economics told clients. Trump flipped states like Michigan, Pennsylvania, and OH from Democrat to Republican in 2016 by promising economic prosperity in part by improving trade deals.
Some Japanese automakers could face a similar challenge, but their responses on Tuesday were mostly positive.
"They used to call it NAFTA", Trump said. By definition, we buy more from them than they buy from us, which gives us the power any major consumer has over a seller.
Nissan said it was "encouraged that an agreement was reached, and hope that it appropriately considers the impact on our employees, suppliers and customers". Sunset clause: The agreement will last for 16 years, and will be reviewed every six years.
"Canada handled that threat with prudent restraint, praising the U.S. -Mexico "progress" and offering to rejoin trilateral talks this week", the editorial praised.
Last week, WTI posted a 4.3 percent weekly gain while Brent marked a 5.6 percent weekly increase.