US position on NAFTA has not changed - BBH

Analysts at BBH note that the White House says that the US position on NAFTA has not changed and while that sounds encouraging, the status quo may not have been particularly encouraging.  

Key Quotes

“The US has made substantive demands like curtailing the dispute resolution mechanism, and a sunset clause (that would end the treaty in five years unless the three parties explicitly endorse it) that some suspect is a poison pill.  There is a negotiating round this month and next.  Whatever low hanging fruit there might be, it is often picked at the start of the negotiations to show early success and create a good atmosphere of cooperation.  The tougher issues come last.”

“The Canadian dollar is near yesterday's lows.  The US dollar has been trending lower since mid-December.  The market anticipates the Bank of Canada to hike rates next week.  However, even before yesterday, the US dollar began correcting higher.  The CAD1.2570 area corresponds to some highs from last week and the 38.2% retracement of this last leg down.  The 50% retracement is near CAD!.2640, which also is near the 20-day moving average (~CAD1.2630).    The Mexican peso is little changed.”