Trump Opens His Mouth, the Buck Pops Higher, We Take the Pips Home
Skerdian Meta • 1 min read
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.