Republican House Speaker John Boehner is laying out his agenda; here’s what it means for the forex market.

  1. Keystone XL pipeline construction – this would be unambiguously good news for CAD. Would hurt WTI.
  2. Obamacare changes – Will be difficult to avoid Presidential veto. Changes will be small, if so. Little FX impact.
  3. Addressing Federal debt – Debt/deficits aren’t really a problem at the moment but austerity would be bad for US growth and the US dollar at this point

Everyone is talking about bi-partisanship right now but it won’t last.