NAFTA remains on the Agenda

=> CAD received the bid towards the end of last week on the back of falling political uncertainty as Canadian and US officials came 'closer' to reaching a trade deal.
=> Here the US is bullying once more on the foreign policy side and Canada are being forced to agree.
=> The BOC on deck this week will keep rates unchanged as widely expected by markets and will be a muted a event.
=> Politics is in the drivers seat here and a positive trade narrative was previously being priced into the currency will be a difficult story to continue selling as Canada are being forced to bow down to US demands.(edited)
=> JPY is the obvious cross the trade this with at present. For similar reasons to those tracking the RUBJPY and ZARJPY trades we will see flows into JPY driven via uncertainty,
=> GL