Employment data for December is also released in Canada today, where expectations are for a slowdown in hiring to 25k and another tick-up in unemployment to 6.9%, ING’s FX analyst Francesco Pesole notes.

Tew Canadian prime minister can have an impact on CAD

“The impact on CAD would likely be short-lived as the currency is almost entirely trading on the back of the perceived risk of a US-Canada trade war, and how that can be impacted by the new prime minister.”

“At this stage, consensus seems to be building around two candidates: former Finance Minister Chrystia Freeland and former Bank of Canada/Bank of England Governor Mark Carney.”