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BMO on The Day Ahead in Canada

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There are no major macroeconomic releases in Canada on Wednesday, said Bank of Montreal (BMO).

Still plenty of news, though, noted the bank. According to media reports, investors should get an announcement on Thursday of a large-scale liquefied natural gas deal between Germany's SEFE and the proposed Ksi Lisims export facility in British Columbia.

This comes as Canada is looking to diversify its export markets while Germany is looking to diversify its energy sources.

United States Trade Representative Jamieson Greer is in Mexico City on Wednesday to kick off bilateral talks ahead of the CUSMA trade deal review, stated BMO, adding that the bilateral talks don't include Canada. Still, Greer's comments indicated he'd like to "come to good terms with Mexico and others in the region on external tariffs" for Canada and Mexico to get "preferential treatment" on U.S. duties.

Greer also highlighted the different paths that Canada and Mexico took to U.S. tariffs by saying "two countries in the world retaliated against us: The People's Republic of China and Canada. So they're just in a different spot, and it's hard to see necessarily where that ends."

The bank will see what, if anything, comes out of this round of talks -- and what it could mean for Canada.

The US dollar (USD) index is little changed, while the Canadian dollar (CAD or loonie) has weakened to $1.383 (72.3 cents US) early Wednesday, added BMO.

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