Trump, Mnuchin are on different wavelengths about a strong US dollar

27 Janvier, 2018, 10:43 | Auteur: Phyllis Powers
  • Reuters

The dollar lost 10% of its value in 2017, and its decline has continued in 2018 as investors moved their money into the strengthening euro and other currencies. And his decision to sign new tariffs boosting American manufacturers this week has prompted fresh concerns about his nationalist tendencies. The dollar steadied after that comment and one by Trump, who said that "ultimately, I want to see a strong dollar".

After Mnuchin's remarks on Wednesday, Commerce Secretary Wilbur Ross denied his colleague was advocating a weaker dollar, but when asked about the risk of trade wars, he told CNBC: "Trade war has been in place for quite a little while, the difference is the US troops are now coming to the ramparts". On Thursday, bullion hit $1,366.07, its highest since August 2016. This would ensure that its intermediate-term upward trend remains firm. EUR has strengthened also on comments by 'someone else'.

Trump is the first sitting president to attend Davos since Bill Clinton in 2000. Here you can see the potential for a "key" reversal in USDU as of the Jan. 25 trading session. But some reckon other factors may be spurring the rally.

But he conceded that a Mexican presidential election, Canadian provincial elections and the US congressional election - all this year - could complicate the talks if they drag on. In this commentary, we'll take a closer look at the dollar and discuss its immediate implications for gold.

"We want free and fair and reciprocal trade".

National Security Adviser H.R. McMaster said the United States continues to have a "special relationship" with Britain.

Trump and his officials roiled markets this week with protectionist rhetoric and conflicting positions on the greenback. Crowds clustered around Trump as he entered the modern conference hall, the president telling passers-by that he was bringing a message of "peace and prosperity". A brief government shutdown threatened to derail the Davos trip altogether.

The dollar retreated once more on Friday as a Donald Trump-inspired surge petered out and the US reported slowing economic growth.

"As we move further into the year, the political calendar gets more complicated", Ross said. Indian Prime Minister Narendra Modi said new barriers to trade could pose a danger on a par with climate change and extremist attacks. On NAFTA he said he may terminate or may not and that they were still trying to renegotiate it. On Brexit Trump and May want a US-UK trade deal as soon as possible.

At 13:30 GMT, US GDP Annualized (Q4) is expected to be 3.0% from 3.2% previously.

"Steve, thanks very much", Hammond told U.S. Treasury Sec. The Palestinians, in turn, said Trump's "language of dictation is unacceptable", in the words of spokesman Nabil Abu Rdeneh. Panel topics include "The Global Impact of America First", "A Society Divided", "Post-Establishment Politics?" and "The Weaponization of Culture".