The protectionist rhetoric from the Trump administration and comments on the U.S. dollar by Treasury Secretary Steven Mnuchin accelerated the plunge in the greenback on Wednesday. The U.S. Dollar Index, which measures the U.S. dollar, lost close to 1% on Wednesday, bringing its total slide for January to 2.6% after falling 10% in 2017. Mnuchin’s remarks that a weak dollar was favourable for exports are not entirely new, however, making them in Davos during the World Economic Forum gives them greater weight and opens the door to continued weakness in the U.S. dollar.
NAFTA talks are going on in Montreal without any major developments to report. Meanwhile, Prime Minister Justin Trudeau took advantage of his trip to Davos to defend the agreement and stress the benefits of globalization.
This morning, we’ll be keeping an eye on Canadian Retail Sales for November and the European Central Bank’s key rate decision. ECB President Mario Draghi will no doubt want to avoid a rise in the euro, with the single currency already at its highest level in three years.
Mark Donohue
Range of the day: 1.2270 – 1.2400