President Donald Trump yesterday signed executive orders smoothing the way for controversial new oil pipelines between Canada and the U.S.A. on the proviso that the raw materials used in construction (or the steel at least) will be “made in America”. This follows on the heels of his broadly successful meeting with several trades union leaders. The upshot was a jolt of market confidence in prospects for growth which led to the key S&P500 Index leaping to a new all-time high. The U.S. Dollar also got a boost following several consecutive days of falls, although not as much as the stock market did.
Attention will now turn to Trump’s “national security” day, in which he is expected to sign executive orders for “extreme vetting” for arrivals from seven Middle Eastern and African countries, as well as ending the “sanctuary cities” arrangement in which certain local authorities within the U.S.A. refuse to cooperate with federal efforts to enforce immigration law. He is also expected to announce the commencement of a construction program to strengthen the U.S.A.’s border with Mexico. Although these are not measures that can be expected to have a direct impact upon market sentiment, the impression is growing that America now has a President who is determined to implement his campaign promises quickly and strongly to an extent that has not been seen for years.
Australian Inflation Lower
The other major news in the Forex market today is the lower than expected Australian inflation figure that was released a few hours ago. The number came in at an increase of 0.5% as opposed to an increase of 0.7%, and this had the effect of pushing the Aussie down a little. The Australian Dollar’s fortunes have also not been helped by Japan’s refusal to continue to negotiate a Trans-Pacific Partnership deal following American’s withdrawal, which Australian business had been keen on.