Mark Carney will be sworn in as Canadian Prime Minister on Friday | Forexlive

Prime minister-designate Mark Carney and his cabinet will be sworn in on Friday, according to a CBC report.

The change of power, along with a meeting scheduled between Canada and US officials on Friday could pave the way for some deescalation on tariffs.

That could be a Canadian dollar tailwind.

Secondarily, Carney is expected to call an election in short order, perhaps by the end of the month followed by a 6-8 week campaign.

Canadian polls have significantly tightened and are near a dead heat in a big shift from a Conservative runaway lead at the turn of the year.

Finally, I would expect Carney to call an election soon because some recessionary winds are blowing and that will reflect poorly on the governing Liberals.

Update: Bloomberg reports that he will shrink cabinet to 15-20 members from the current 37. That he’s considering keeping a cabinet at all suggests he might be stretching out the timeline for an election. Alternatively, it could just mean that they only need the bare-bones ministers during a campaign.