LONDON/NEW YORK (Reuters) – The dollar extended a slide as crude oil prices trimmed their losses after U.S. President Donald Trump said on Monday he would impose tariffs and taxes on countries to enrich Americans, overhaul the trading system and declare state of emergency in energy.
COMMENTS:
ZACHARY GRIFFITHS, SENIOR INVESTMENT STRATEGIST, CREDITSIGHTS, CHARLOTTE, NORTH CAROLINA
“The dollar and stock futures rose on expectations that Trump … will not impose direct tariffs on any country today. It appears to be a helpful trade.”
“But if you look at what Trump said in his speech, he seems to be pretty tough on tariffs. I think there’s more to it.”
“As far as the decision not to impose tariffs today and it being a market positive, I’m a little skeptical about that and I’m not sure it’s worth it. If you have more gradual but still large tariffs in terms of percentage on a wide range of countries, and if it implements over time, it could be more of a challenge from an inflation perspective for the Fed and could even result in tighter policy for a longer period of time.”
JAMIE COX, MANAGING PARTNER, HARRIS FINANCIAL GROUP
“Energy prices will drop significantly — consumers will be looking forward to the savings, and inflation data in 6-7 months will look much better.”
NIGEL GREEN, CEO, DEVERE GROUP
“The energy sector will undoubtedly benefit the most from this sweeping policy change.”
“Oil and gas exploration, production and infrastructure companies will gain as regulatory hurdles are removed and investment in domestic production rises. Shares of US energy giants and mid-caps are likely poised for significant upside momentum as the market prices increased production and profitability.”
“Global oil prices, which are already sensitive to geopolitical developments, could experience sharp adjustments.”
GABRIELA SILLER PAGAZA, DIRECTOR FOR ECONOMIC ANALYSIS, GRUPO FINANCIERO BASE
“At the beginning of Trump’s speech, the exchange rate (of the Mexican peso) was 20.5751… By the end of the speech, it had fallen to 20.5289 pesos to the dollar, implying an appreciation of 4.6 cents or 0.22%, since there was no publication of tariffs.”
MARC CHANDLER, CHIEF MARKET STRATEGIST, BANNOCKBURN GLOBAL FOREX, NEW YORK
“Foreign currencies are recovering right now.”
“Although Trump didn’t specify, it’s very clear that when he says the US is going to be a big car manufacturer, he’s talking about tariffs. So whether he imposes them on day one, day five or day 10, I’m not sure he does such a difference.”
“The idea that he’s going to be able to raise $2 trillion in tariffs seems to be a stretch. The US only imports $1 trillion in goods, so what makes him think he’s going to be able to raise $2 trillion and in what time frame? It makes no sense.”
