Is Trump about to announce he’ll devalue the US dollar?

As advertised, Trump met with various people from the pharma sector and swerved on to talking about the US dollar

This morning, Trump’s trade advisor, Peter Nevarro commented that Germany were running the euro like “an implicit Deutsche Mark”, and now Trump himself has launched a tirade about other country’s devaluing their currencies.

“A lot of the companies have moved out, they don’t make the drugs in our country anymore. A lot of it has to do with regulation, a lot of it has to do with other countries take advantage of us with their money and their money supply and devaluation.

Our country has been run so badly, we know nothing about devaluation; every other country lives on devaluation.

You look at what China’s doing, you look at what Japan has done over the years, they played the money market, they played the devaluation market and we sit there like a bunch of dummies, so you have to get your companies back here.”

Nevarro’s comments today sent the US dollar lower and the Euro higher, and these comments have added even more to the fire. The US Dollar Japanese yen cross traded down to a low of 112.08, nearly 200 points from its highs.

Although the comments may be taken with a pinch of salt, the rhetoric on currencies from Trump and his administration is rising and that could send forex and other markets into another crash scenario.

 

New “Trumpometer” to gauge Donald Trump actions

Germany’s investor sentiment survey group Sentix devises an index on Donald Trump

The “Trumpometer” is a new measure of investor sentiment of Donald Trump and his presidency.

Compiled from over 1200 professionals and private investors, it aims to keep track of sentiment for Donald Trump and his policies.

“The new US administration is increasingly viewed by investors as an important market factor. For this reason, sentix begins measuring this perception and assessing how the actions of the US administration in various policy areas affect the stock market from the investor’s point of view.”
According to the first report,
  • 15% of private investors/11% of professional investors expect Trump to last the full 8 years term
  • 29.3% of private/31.8% of professionals think Trump will not complete his first term (“an overwhelming rejection of the president”, says Sentix)

Investors have spoken in depth about Trumps various policies and their effect on the stock market.

sentix-trumpometer

These give the impressions of what those policies will do for the stock market and are not an overall assessment of those policies.

This gives us something else to monitor Trump’s actions with.

 

What stocks is Donald Trump going to sink today?

Here’s Trump’s schedule for today.

Pharma stocks could be feeling the heat today as the Donald has a meeting with the prescription drug association, as well as the CEO’s from big pharma firms. Here’s what’s on Donald’s to-do list today.

  • 8:30 am ET Receives the Presidential Daily Briefing
  • 9:00 am ET Meets with the prescription drug industry trade association, Pharma
  • 10:30 am ET Meets with Chief of Staff Priebus
  • 12:30 pm ET Lunch with Rudy Giuliani
  • 2:00 pm ET Holds a listening session with cyber security experts; Roosevelt Room
  • 3:15 pm ET Signs an executive order
  • 8:00 pm ET Announces nominee to the Supreme Court

Over 50% of finance and investment funds say Donald Trump’s policies will fail to meet expectations

Reuters have run a poll of fund manager and investment officers

  • Over 50% say that Trump’s policies will fail to meet the market’s expectations
  • Protectionist measure could pse a risk to global trade

Global investors are more excited as they raised US equity holdings to the highest since June 2015 on Trump growth expectations.

A measure of expectations for an economy is how investors react. In putting their money into the US they expect Trump do deliver on his promises to Make America Great Again. They may lose money if they are wrong but they are a big forces in the movement of money flows and the effects that can have on currencies and assets.

Trump’s trade advisor Nevarro slams Germany and its manipulation of the Euro

The UK’s FT has an interview with Trump’s trade advisor Peter Nevarro

  • The Euro is being used like an implicit Deutsche Mark
  • The euro’s low valuation is giving Germany an advantage over its main partners
  • Germany is one of the main hurdles to a trade deal with the EU, and talks with the EU over the TTIP are dead
  • Brexit killed TTIP on both sides of the Atlantic even before the election of Donald Trump

Although the FT article is titled Trump’s top trade adviser accuses Germany of currency exploitation”, it’s far from calling Germany an actual “currency manipulator”

Still, it’s another attack on a country from the Trump administration, and one the German’s won’t take kindly too. EURSD has jumped to 1.0763 today after the news.

Donald Trump poll: Spawn of Satan or Saint sent to save us?

Let me know your thoughts about the Donald’s progress as President of the US so far

What do you think of Donald Trump’s first days as President?

A financial algo trading bot has been built to trade Trump’s tweets

Trumps tweets have wreaked havoc on financial markets

Some bright spark has decided that there’s money to be made on trading from Donald Trump’s tweets.

Algorithmic bot trading is where programs are designed to automatically read news headlines and stories, and configure trading opportunities from them. In this case a firm has designed a trading algo that scrutinises Trump’s tweets and trades from them.

Since Trump was voted in, he has tweeted about various US companies, in various sectors, and caused their share prices to tumble (Boeing and Airforce one). Lockheed, and the pharmaceutical sector are others. One of the biggest market moves, at the hands of Trump’s tweets and speeches, has been the Mexican Peso, which has been hit with all the wall talk.

The bot has been called the Trump & Dump bot and has been developed by T3. Now, before we all start screaming that Wall St bankers are manipulating markets for huge profits again, T3 will be donating all proceeds to the ASPCA.

trump-dump