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.