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Market Update

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

US Treasury Secretary Talks US Dollar Down; Trump Administration Promotes America First Agenda in Davos

Published January 24, 2018
  • The US dollar is under sharp pressure this morning after US Treasury Secretary Steven Mnuchin said that the recent decline in the greenback is good for the US economy; Mnuchin’s comments came from a talk at the World Economic Forum in Davos where he noted that “A weaker dollar is good for us as it related to trade and opportunities”
  • US Commerce Secretary Wilbur Ross also offered US-centric comments in defending President Trump’s recent tariffs while also indicating that more trade protection could be put in place; Ross noted that these trade maneuvers were brought on by “inappropriate behavior on the part of our trading counterparties”
  • US President Donald Trump will also travel to Davos today to meet world leaders; Trump is likely to further encourage global companies to take advantage of his administration’s tax cuts while discussing ongoing security issues with North Korea, Islamic State and Iran
  • USD/CAD is now in the low 1.2300’s, losing nearly a cent of its value since yesterday as the US dollar index moves to a 3-year low; the loonie moved to its strongest level against the greenback since September 2017
  • Canadian Prime Minister Justin Trudeau is seemingly taking an opposite stance on trade compared to his American counterpart with the agreement to sign the Tran-Pacific Partnership later this year; the TPP is a trade agreement between Canada, Mexico, Japan, Australia and several other South American and South-East Asia nations
  • NAFTA talks commenced in Montreal yesterday with all parties noting optimistic signs of progress; President Trump said talks were going “pretty well” alleviating pressure on both the Mexican Peso and the Canadian dollar