MW: Canadian Dollar Unchanged, Trudeau Meets With Trump
USD/CAD is showing little movement in the Monday session. Currently, the pair is trading at the 1.31 line. Investors will be starting the week looking for economic cues, as there are no Canadian or US releases on the schedule. On Tuesday, The US releases PPI and Janet Yellen will testify before Congress.
US crude stockpiles continue to record surpluses. On Wednesday, Crude Oil Inventories made a splash, soaring 13.8 million barrels, according to the Energy Information Administration (EIA). The indicator has recorded five straight surpluses, easily exceeding forecasts on each occasion. The huge gain also marked the highest surplus since late October. Crude posted sharp losses on Tuesday, following the release of the API inventories report, which predicted a surplus of 14.2 million, compared to a forecast of 2.38 million. The EIA says that US production in 2017 will be the highest since 1970, so cuts from OPEC and Russia may not lead to higher oil prices, due to the steady increase in US crude production. The Canadian dollar is sensitive to crude fluctuations, so stronger oil prices would likely boost the Canadian dollar.
Donald Trump continues to entangle himself in controversy, with US allies, the media and the Supreme Court. On Thursday, Trump said that the administration was working on a â€śphenomenalâ€ť tax plan, which would be released in a few weeks, although he gave no details. Trumpâ€™s plan is expected to lower taxes for both corporations and individuals, although tax reform promises to be a slow and daunting task, as changes to the US tax code can only be made by Congress. Still, the markets are hungry for any movement in this direction, and the dollar could get a strong boost once Trump outlines his tax agenda.