Carney set to replace Trudeau as PM- USD/CAD still digesting the news

On Friday the USD/CAD did rise after the release of what was a rather poor Canadian Jobs report. The USD/CAD lifted to as high as 1.4426. However, despite further downside in the CAD/JPY and gains in the EUR/CAD, the US dollar was unable to sustain the move and it fell back towards 1.4350, before later closing out the week at 1.4372. The price action in Asia today has been rather sideways, inside a range covered by 1.4340 to 1.4399. The news that the ex- BOE Governor, Mark Carney is to succeed Justin Trudeau as the Canadian Prime minister has yet to be fully digested by the markets. That said, this appointment was no surprise and looked odds on anyway. Carney is not going to bow to the US, or Trump on any level and it looks like a full-blown trade war between the two countries is set to unfold from here on. As to how that will impact the USD/CAD is a little uncertain, but the relative advantage of a weak currency in all this could be vital. We shall see how that plays out in the days and weeks ahead. The USD/CAD is currently trading at 1.4359