USD/CAD has crept higher since the North American open but that only brings it to flat on the day at 1.3997. The loonie is a modest underperformer today with AUD and NZD up on positive sentiment around global growth via the US-China deal.
Trump said today that he won’t talk with Carney for a “long time” but the market isn’t buying it. It’s also not clear what tariffs on Canada will rise by 10% as the White House hasn’t made it clear.
The market sees it all as bluster and fluff with a deal coming eventually. Carney today said a deal was close before Trump blew it up. There is a playbook where Trump likes to leave deals at the altar before making up after getting some concession.
Notably, Carney will meet with Xi at the APEC Summit.
This article was written by Adam Button at investinglive.com.