With today marking Donald Trump’s first day in office, rather predictably the 45th US President has once more found himself in the headlines. A source from the White House has stated this afternoon that Mr. Trump is ready to renegotiate NAFTA and withdraw from the TPP. This could have big impacts for international trade and has caused volatility in the USDCAD (-0.32%) and USDMXN (-0.61%).
Despite looking like the news may come to the aide of the USD, the buck remains lower across the board with USDJPY (-1.22%) falling under the 113 handle. This decline has boosted precious metals with Gold (+0.78%) moving towards the top of its recent range.
As far as stock indices are concerned there’s a sea of red across the board today with the UK100 (-0.64%) slipping back towards the 7000 level. The DE30 (-0.67%) is also selling off and whilst the US indices such as US500 (-0.45%) are performing relatively better, they are only half way through their cash session and could see more weakness before the Wall Street close. A driving factor for US stocks could be earnings season which we are already two weeks into and this week sees big tech firms report. This could be particularly interesting for the US100 as this index is particularly sensitive to their fortunes.
Looking ahead to tomorrow the main event is the UK Supreme Court ruling on the appeal regarding the triggering of Article 50. This is expected to be announced shortly after 09:30. Before that we have Eurozone manufacturing figures with the main release coming at 09:00. The afternoon sees US existing home sales out at 15:00 which is expected to show a fall to 5.54M.
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