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