Like the old EF Hutton ads, when The Donald speaks, currency and bond traders listen.
(Bloomberg) President Donald Trump said he won’t brand China a currency manipulator, retreating from core campaign promise, though he argued that a strong dollar is hampering the ability of American firms to compete.
Trump, in an interview with the Wall Street Journal on Wednesday, appeared to acknowledged that China hasn’t been intervening to weaken its currency recently. “They’re not currency manipulators,” he said.
It’s a shift of opinion after Trump accused China during last year’s election campaign of manipulating its currency to gain the upper hand in trade and vowed to label the country a manipulator on his first day.
U.S. 10-year bond yields slumped and the dollar fell after Trump indicated in the interview that the U.S. currency is getting so strong that it’s harmful to the economy, while other nations “are devaluing” their currencies.
Watch the dollar crash after The Donald speaks.
Here is the Euro against the US Dollar.
The Great Britain Pound against the US Dollar?
And here is China’s Renminbi against the US Dollar.
And the US Treasury 10 year yield slumped. (Trump Slumped??)