Uncertainty surrounding how negotiations regarding Brexit will play out is unquestionably the theme of the day. As we go to press, U.K. Prime Minister Theresa May is addressing the media to provide further details on her administration’s plans in that regard. This morning, the pound sterling is up sharply and European stocks are down. More details to follow.
After experiencing a day of generalized growth with a backdrop of risk aversion, the U.S. dollar is falling this morning. This movement is apparently related to remarks by President-Elect Trump, who stated that the U.S. dollar was apparently already “too strong,” notably due to too much U.S. currency in Chinese hands.
Moreover, the new U.S. administration continues to lay the groundwork for its customs reform plan. Although Canada had been spared up to now, a spokesperson for President-Elect Trump did not hesitate to put Canada in the same basket as Mexico. He stated that the government will oppose any moves outside the United States, whether to Mexico or Canada. Other developments along these lines could hurt the value of the loonie against the greenback.
