Alberta’s economy got a boost from President Donald Trump in his fourth day in power when he signed an executive order Tuesday morning allowing TransCanada Corp to re-submit its application to build a pipeline linking Alberta and Nebraska. The project, estimated to cost $8 billion, would allow Canadian oil (830,000 barrels a day) to reach refineries in the southern United States. The energy sector of the S&P TSX benchmark index reacted strongly, gaining more than 2% in trading yesterday. The Canadian dollar posted the best performance of the major currencies, gaining close to 0.6% against the U.S. dollar and 0.9% against the euro.
With no economic news of importance scheduled today, investors’ attention will be drawn to the Dow Jones Index, which is poised to break through the historic 20,000 mark today. We believe that the recent strength of the Canadian dollar related to political developments should be temporary and offers U.S. dollar buyers a great opportunity to place orders with their trader.
