Trump Backs Down from NAFTA Threats; Oil Prices Fall on Oversupply Worries

• The loonie recovered from yearly lows against the US dollar this morning; shocks from a possible US exit from NAFTA were quelled after US President Trump said he would not scrap the pact but renegotiate with Canada and Mexico instead
• White House officials mentioned that President Trump told Canadian Prime Minister Justin Trudeau and Mexican President Enrique Pena Nieto that he would resist a speedy termination of NAFTA, in what was described as a “pleasant and productive” conversation
• The market had a mixed reaction to President Trump’s tax plan reveal yesterday; investors were disappointed by the lack of specific details despite claims that the new cuts would greatly improve America’s GDP
• The announcement by Treasury Secretary Steven Mnuchin and Chief Economic Adviser Gary Cohn largely confirmed the macro details that President Trump had earlier hinted at; the corporate tax rate is to be reduced to 15% and the tax code for individuals will be simplified
• Oil prices dropped this morning to their weakest level in around a month, relating to fears that an ongoing rebound in US shale production could stem OPEC’s efforts to curb global oil supply
• The European Central Bank left interest rates unchanged as expected; investors look to the upcoming press conference for any hints of dovishness from Central Bank President Mario Draghi