President Trump and Canada's PM Trudeau presser was optimistic and intended to build a stronger bridge between both nations as reported on the wires, via Bloomberg, such meeting ended with a commitment to allow cargo trucks to more smoothly traverse the planned Gordie Howe International Bridge.
•Canada and its wealth of auto plants, steel works, and iron smelters, risk bumping up against a key plank in the administration’s plans to boost domestic production by promoting traditionally male-dominated industries including lumber mills, shipyards, and metal manufacturing.
•Canada imports more from the U.S. than it exports when taking into account services, but that trade deficit morphs into a small surplus when only goods are included.
•Canada runs notable surpluses with the U.S. in primary metal manufacturing, wood products, and transportation equipment. Oil and gas, another area of surplus, appears less likely to come under scrutiny given the president’s enthusiasm for the proposed Keystone XL pipeline, which would link Alberta to Nebraska.
•Surgical measures to move Canadian auto assembly jobs to the U.S. would probably have a muted effect on the balance of trade in motor vehicles and parts as a whole.
Meanwhile, the USD/CAD pair remains offered below its 200-DMA. As of writing it trades around the 1.3100 handle, still bearish after roaring US data and a determined Fed's Yellen.
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