Greenback Falls On Trump
The National Bank of Canada | Jan 12, 2017 11:06AM ET
Everything seems to be pointing to a far-from-dull period during President-elect Trump’s mandate given the reaction markets had to his press conference yesterday. The Canadian dollar alone fluctuated very quickly by a total of 300 points to end the session higher against the greenback. Though Trump confirmed his intention to repeal and replace Obamacare and take on prescription-drug prices, there was no concrete statement about an economic and fiscal plan.
As a result, the greenback is losing steam against the major currencies, disappointing stakeholders. Mexico, which still refuses to pay for the border wall, saw its currency reach a record low. WTI oil prices, which were dropping in the morning further to the announcement of a substantial build-up in inventories in the U.S., was able to rebound with the weakening USD.
Crude-oil prices are gaining this morning with Saudi Arabia confirming that its daily production levels are now below 10 million barrels. The USD may remain under pressure until anticipations of rate increases are back in the news.
- Range of the day: 1.3010 – 1.3115
Stéphane Goulet
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