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Market Update

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

US Markets Closed for Holiday; Oil Down

Published January 16, 2017
  • US markets are closed Monday as the nation observes Martin Luther King Day; expect slow movements in the markets throughout the day
  • GBP/USD fell to its lowest level since October’s flash crash on Monday amid reports from Prime Minister Theresa May that the UK government was prepared to make a “clean and hard” exit from the European Union
  • The pair improved slightly after a UK official diminished rumors stating that talk of a hard Brexit was “speculation”; Theresa May will give an official statement on Tuesday regarding the UK’s secession plan
  • Global stocks were mostly lower on market jitters regarding a hard Brexit and upcoming inauguration of President-Elect Donald Trump
  • Stocks for German automakers slumped 2 percent after Trump warned he will impose a border tax of 35 percent on all vehicles abroad to the US market; the President-Elect also gave significant praise for the UK’s Brexit vote and opined that many other EU countries would soon follow
  • Oil prices fell on Monday as global production remains high and inventories are near record high levels in many areas; Saudi Arabia’s Energy Minister Khalid al-Falih said OPEC and non-OPEC producers are unlikely to cut oil output beyond the original deal

Chart (1) GBP/USD Performance Q3 2016 – Present