Carney didn’t get “Zelensky’d”.
That bar for today’s meeting between the North American leaders was to avoid a meltdown and as the picture above shows, it went well enough.
The Canadian PM is out with a readout now and said discussions were ‘constructive’ and ‘wide ranging’ and agreed to discuss more and have a meeting at the G7. Those are mostly coded words and not exactly great ones.
If you are a CAD bull, you would have hoped for some positive talk about a reset and a North American bloc but that wasn’t really the case. If you are a CAD bear, you would have hoped for a damaging breakdown.
Neither of those things happened so it looks like the status quo.
“I think we established a good basis today,” Carney said.
In the bigger picture today, the US dollar is selling off broadly and that has USD/CAD down 56 pips to 1.3769. The broader market is starting to worry about the lack of progress on trade deals.
I fear that a nine-day stock market rally has emboldened Trump to push harder on tariffs and that’s going to make trade deals with allies a very tough proposition.
More from Carney:
- There were no decisions on tariffs today
- It is a very complex situation
- I was clear with Trump that Canada will never be for sale
- We made progress, had very comprehensive, tangible exchanges
- There will be meetings between ministers and officials
- Progress would not necessarily be evident during negotiations
This article was written by Adam Button at www.forexlive.com.
