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Trump Opens His Mouth, the Buck Pops Higher, We Take the Pips Home

Not long after opening our NZD/USD signal, Trump comments hit the news wires and made our day. I told you in the previous update that politics are running the forex show now and Trump was on the forex agenda today. 

Bloomberg published a piece saying that Trump will announce "something" on taxes in a couple of weeks. I`m not sure what something means but the market got excited already.

USD pairs jumped 40-50 pips higher with USD/JPY leading the way after a 100 pip surge. He said he doesn´t like airline fees and taxes, competitors of US airlines are heavily subsidized (depends, some do), he will roll back regulation and oil firms will make massive investments.

I don´t think that oil companies will invest in the US shale industry, not at current oil prices. The average extraction cost per barrel comes somewhere at $60/barrel for US shale, from what I can recall 5 months ago.

So, the return from shale doesn´t offer enough of an incentive for investment, unless Trump subsidizes them. But, he just spilled venom on such travesty. 

However, we got our pips from the NZD/USD signal and it didn´t even last an hour so, thank you president Trump for today´s bread. 

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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