- What Trump is threatening on Greenland is very different than the other trade deals
- The worst thing other countries can do is to escalate trade tensions against the US
- We’ll see a strong economy this year
- US to have real GDP growth of around 4% to 5%
- Fed chair announcement could be as early as next week
- There are four candidates for the Fed chair presently
They look to be doubling down on the rhetoric here and it remains to be seen if they will be open to any talks on the sidelines in Davos. Trump earlier posted about a text message sent by French president Macron about a potential G7 meeting in Paris on Thursday afternoon. However, he did not officially say that he will be accepting that invite. The message:
If things with Greenland are indeed “different” in that they will treat their tariffs threat more seriously, then the trade chaos that will ensue is something that won’t go down well for the dollar and risk sentiment. So, just be on the lookout for that.
The greenback is falling further on the day with EUR/USD now on approach to 1.1700 and USD/CHF down 0.4% to 0.7940 currently. NZD/USD is the lead gainer and is up 0.7% to 0.5840 despite a more negative risk mood.
The Japanese yen is the other big loser on the day with it being even weaker than the dollar. USD/JPY is up 0.1% to 158.33 and that says a lot about the yen’s plight at the moment when it can’t even outpace the greenback.
This article was written by Justin Low at investinglive.com.