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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

Fed’s Annual Economic Policy Symposium Starts in Jackson Hole Today

Published August 24, 2017
  • The Federal Reserve Bank of Kansas City hosts dozens of central bankers, policymakers, academics and economists from around the world at its annual economic policy symposium in Jackson Hole, Wyoming.  The participants convene to discuss the economic issues, implications, and policy options pertaining to the symposium topic. This year’s the topic is: Fostering a Dynamic Global Economy
  • Investors are eagerly awaiting comments from ECB President Mario Draghi and U.S. Federal Reserve Chair Janet Yellen tomorrow in Wyoming. Draghi may be tempted to influence markets in order to rein in the rise in the euro which is up more than 12% against the greenback this year
  • Canada and Mexico dismissed Donald Trump’s latest threat to scrap NAFTA yesterday, describing it as a negotiating tactic aimed at winning the upper hand in talks to update one of the world’s largest trading blocs.  Trump has long called the treaty from 1994 a bad deal that hurt American workers, saying it should be renegotiated or terminated. Justin Trudeau told reporters in Montreal yesterday that his officials would be staying focused on the hard work they have ahead of them at the negotiating table
  • If NAFTA talks go poorly, there is a possibility the loonie could weaken, though the risks are likely larger for Mexico and its Peso given Trump’s campaign focus on trade with Mexico.  The uncertainty around the trade talks will likely offset any traction the loonie may gain from higher oil prices, or an interest rate hike by the BOC
  • The loonie is amid the best performing G10 currencies overnight, opening the NorAm session at 1.2525 as oil holds above the $48 level