Canadian Dollar Lower After Tense G7 Meeting; US & North Korea Prepare for Singapore Summit
Published June 11, 2018
The Canadian dollar is starting the week on a low note as reactions and developments from this weekend’s G7 meeting continue to weigh on the loonie.
Along with refusing to sign any G7 communique, President Trump has ardently volleyed a series of condemning tweets at fellow leaders. Canadian Prime Minister Justin Trudeau received the heaviest blunt of the criticism as President Trump offered ad hominem attacks, stating that Trudeau was “dishonest & weak” in regards to trade negotiations and Canada’s purported 270 percent tariff on dairy. Director of the US National Economic Council Larry Kudlow also offered sharp remarks against Trudeau in saying his actions were a “betrayal” to America.
The Trump Administration’s tough posturing against traditional allies comes right before President Trump’s meeting with North Korean leader Kim Jong-Un; both leaders have landed in Singapore ahead of their June 12 meeting to prepare for talks on the de-nuclearization of the Korean peninsula.
US Secretary of State Mike Pompeo noted preliminary talks from both sides were “substantive and detailed.; Pompeo, however, reiterated that the US objective will not waver and that current economic sanctions on North Korea will not be removed until the rogue North Korean state commits to full de-nuclearization.
Oil prices are lower this morning as the market remains cautious on expectations that OPEC members will raise production in coming month.; Friday’s Baker Hughes oil rig count is also putting pressure on oil as the number of active US oil rigs rose to 862 last week, the highest such level since March 2015.