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Market Update

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

US Advisor Reassures Canada on NAFTA

Published January 24, 2017
  • Trump Advisor Stephen Schwarzman offered reassurance to Canadian businesses yesterday in saying Canada should not be worried about Trump’s protectionist policies, mentioned that Canada is held in very high regard with the US
  • Schwarzman also mentioned and that the risk of Canada suffering collateral damage from NAFTA talks was low; further cited that Trump’s main focus is on larger trade deficits with other nations
  • The Canada-US Free Trade Agreement combined with NAFTA has allowed two-way trade between the US and Canada to triple since 1989; the two nations traded nearly $700 billion USD in goods and services in 2015
  • The market turns to Trump again this morning as he will meet with Ford, General Motors, and Fiat Chrysler to pressure increased manufacturing investment in the US; the market awaits potential statements on taxes and deregulation for these manufacturers
  • The UK Supreme Court ruled on Tuesday morning that Prime Minister Theresa May must wait for the UK Parliament’s vote approval to trigger Article 50, which would formally begin the UK’s exit from the European Union
  • May said that this new court ruling will not delay her plans to commence the Brexit process by the end of March 2017; GBP/USD is down nearly .5% on this news
  • Positive data out of the Eurozone indicated the area is starting 2017 on a high note with German, French, and Euro area PMI data all showing expansionary numbers
  • Oil prices moved higher this morning on further reassurance that major oil producers are fulfilling their pledge to cut production

Charts (1) Euro Area Manufacturing PMI 2016-2017