Trump Opens His Mouth, the Buck Pops Higher, We Take the Pips Home - Forex News by FX Leaders

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

Posted Thursday, February 9, 2017 by
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. 

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