Coupling this with an aggressive two tier import tariff has further debased the U.S. dollar. The tariff will affect all white goods coming into the US like washing machines, solar panels etc. And we can tell by the spike in the gold price (a four month high overnight $1,355 per troy ounce), that many investors are choosing risk aversion trades like bullion (a favourite of the big banks too!).
All the noise we are hearing from the beeb and other outlets that Stirling, Euro and Yen are all steaming full ahead, is largely down to the US dollar story. Never underestimate the emotional outcome attachment to investments... remember it's all in the story, and that's what makes the markets dance. With all this instability going long on precious metals makes sense.
Furthering the narrative this week US Treasury secretary Steven Mnuchin whilst in Davos, Switzerland has been laying the path for Mr Trump. Talking down the dollar and saying we are open for business. We now await Mr Trump's address on Friday, 26th. Will he simply emphasise for clarity the words of Mr Mnuchin or will he prove to be a little unpredictable? Hold that front page!