All eyes are on President Trump after Treasury Secretary Steve Mnuchin’s comments yesterday dampened investor’s hopes for a speedy delivery on tax reform. Mnuchin said that while he hoped to see tax reform delivered before Congress goes on recess in August, but that timeline is “very aggressive”. President Trump will speak at a CPAC conference at 10 am EST, but more hype surrounds his address to a joint session of Congress next Tuesday, February 28th.
Political risk may be cooling in France after far-right candidate Marie Le Pen’s campaign for the French presidency endured a rocky week in the headlines. Her centrist opponent Emmanuel Macron tucked a nice feather in his cap by aligning himself with a prominent veteran of French politics Wednesday. Since then, Le Pen has publicly refused an interview with police in an investigation over her alleged misuse of funds from European Parliament, claims she vehemently denies.
Inflation rates in Canada increased the most since October 2014 to sit above the Bank of Canada’s target rate of 2% in January. Yet since energy prices were the main driver of this increase, CAD quickly shrugged off the gains from a surprisingly high figure. This will likely factor in to the Bank of Canada’s statement on Wednesday accompanying their interest rate decision – stay tuned.
Next week, look out for: Euroarea business confidence / US durable goods on Monday, Trump’s address on Tuesday, Bank of Canada / US manufacturing on Wednesday, and Fed chair Janet Yellen’s speech on Friday.
EURUSD: The dollar erased losses against the euro as traders position themselves into the weekend.
GBPUSD: Sterling lower despite important win for Theresa May’s ruling party.
AUDUSD: Aussie dollar is retreating after reaching post-election highs yesterday.
CADUSD: Canadian dollar stable after a brief relief following a strong inflation print.