• Dollar finds some footing
  • Trump promises a pipeline and CAD is on fire
  • Sterling lower on Supreme Court ruling
  • Mexico is hitting back and the peso rises

After hitting the lowest levels of the year, the USD has stabilized – notably recovering some losses against the yen and the pound. Trump headlines continue to sway currency markets, and as investors calm their panic from Friday’s inauguration speech, the USD remains vulnerable to the president’s rhetoric.

Among major currencies, the pound was the clear underperformer. As expected, the Supreme Court ruled in an eight to three vote that the British government’s ability to trigger Article 50 will be subject to approval by Parliament. Having oversight by Parliament will give those who oppose Brexit a chance to sway the terms of Britain’s formal exit from the European Union, it will also put more pressure on Prime Minister Theresa May to move through the legislative process ahead of her March deadline to trigger the UK’s exit.

CAD is on a tear after headlines that Donald Trump has plans to advance the Keystone and Dakota pipelines. USD/CAD took a steep drop on the news and is looking to break below 1.32, we can expect further strength from the Canadian dollar if this headline develops into a more concrete plan from Washington.

The Mexican peso is up on more NAFTA talks. President Trump has announced his intentions to renegotiate the terms of NAFTA to better serve US interests, but Mexico isn’t ready to roll over yet. Economy minister Ildefonso Guajardo announced today that Mexico can very well pull out of the agreement if it does not benefit the Mexican economy, sending the Mexican peso higher for a second day. During much of his campaign, the president promised to eliminate the trade agreement, calling it “one of the worst deals ever”, and USD/MXN has been largely driven by US politics since the election; however these developments could indicate that the pair may be increasingly moved by domestic elements as well.

EURUSD:   After overnight declines, the euro is firming up and once again gaining on the USD.

GBPUSD:  Sterling’s declines stemmed from a widely anticipated decision by the Supreme Court which ruled that the government will need a vote from Parliament to proceed with their plans for Brexit.

USDJPY: The yen gave up much of yesterday’s gains as the USD recovered.

USDCAD: Canadian dollar surged after reports that Trump will be advancing the Keystone and Dakota pipelines – USDCAD down a cent from early morning highs.