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Trump Talks Down USD; Oil Down on Rig Count
Published January 23, 2017
Donald Trump’s inauguration speech marked a sharply protectionist tone for the American economy during his term; Trump reiterated his pledge to revive US manufacturing by putting America first
An unnamed White House official reported that President Trump would sign an executive order to renegotiate NAFTA on Monday; Trump also mentioned he would fulfill his promise of pulling the US out of the Trans-Pacific Partnership
Trump’s “America First” statements and lack of details on promises of tax cuts and fiscal stimulus have caused global stocks to slump Monday morning; Japanese and European equities pushed lower
The US Dollar Index also moved lower as the USD fell against most majors; investors keenly await the first official Trump administration press briefing at 1:30 PM EST on Monday
The USD/CAD rate, however, continues to improve as CAD experiences weakness due to lower oil prices
WTI and crude both fell as increased US oil drilling activity overshadowed news that OPEC and non-OPEC producers were on track to meet output goals
The Baker Hughes rig count showed that the number of US oil rigs jumped by 29 to 551 last week; this is the largest weekly increase since the rig count began in June and the highest level in 14 months
Canadian month-on-month wholesale sales showed a 1.1 percent decrease this morning
There is little data from Canada for the rest of the week; look to US GDP and unemployment claims for movements in the USD/CAD rate this week
Charts: (1) Canadian Month-on-Month Wholesale Sales