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CAD Improves on Oil and USD Weakness
Published January 12, 2017
The US dollar fell to one month lows after President-Elect Donald Trump’s press conference yesterday failed to mention any specific details on his plans for new economic and fiscal initiatives; US Dollar Index is at its weakest level since December 14, 2016
European markets showed weaker performance and US stock futures are lower as healthcare stocks dropped after Trump heavily criticized and promised swift reform for the pharmaceutical industry
A lack of detail on tariffs in Trump's news conference boosted Asian export-oriented and emerging markets such as South Korea and Chinese yuan, while Russian stocks were supported by Trump's defence of better ties with Moscow, also gained from higher oil prices
CAD is one of the best performing G10 currencies this morning as the Canadian Dollar is at its strongest level against the USD since mid-October; CAD is being supported by higher oil prices however 1.3000 remains as a strong psychological support barrier
A better than expected data release of US Unemployment Claims (247,000 actual vs. 266,000 expected) will offer the US dollar strength for the day
Oil prices gained strength on the back of a weaker US dollar; gains were ultimately kept in check as worries of global oversupply arose following data released on US Crude Oil Inventories’ rising stockpile numbers
Federal Reserve Chair Janet Yellen will speak at 7:00 PM EST today at a town hall event, however, traders do not expect much guidance from Yellen on future monetary policy in her speech
FOMC members Charles Evans and Patrick Harker will both speak at 8:30 AM EST at separate events and may offer more substance and comments on 2017 monetary policy
Charts (1) US Unemployment Claims January 2016-January 2017