Donald Trump: U.S. Dollar Is 'Too Strong'
Trump told the WSJ that the U.S. dollar is "too strong," which makes it difficult if not impossible for U.S. companies to compete against Chinese companies. The president-elect emphasized the fact that the Chinese currency is "dropping like a rock."
Trump has accused China as being a currency manipulator, and as president, he may officially brand the country as one.
The Bloomberg Dollar Spot Index, a measure of the strength of the U.S. dollar against its major global peers, fell more than 1 percent. On the other hand, the most commonly referenced gold-related exchange-traded fund, the SPDR Gold Trust (ETF) (NYSE: GLD) gained more than 1 percent to trade at $115.50 early Tuesday morning.
Trump's Comments Represent 'Noise'
Fredrik Nerbrand, global head of asset allocation at HSBC Holdings brushed off Trump's comments as being chatter. He told Bloomberg that the U.S. dollar's selloff on Tuesday is merely "noise rather than a structural shift."
"If Trump wants to become as growth-generative as he's planning to be and you don't have the same fiscal push coming from the rest of the world, then it's a question of where does the capital flow to," he added. "The dollar is the tallest pygmy."
Here is a summary of how other gold related exchange traded funds were performing ahead of Tuesday's market open:
- Direxion Daily Gold Miners Bull 3X ETF, Direxion Shares Exchange Traded Fund Trust (NYSE: NUGT): $10.39, up 7.11 percent.
- Market Vectors Gold Miners ETF (NYSE: GDX): $23.29, up 2.42 percent.
- Direxion Daily Jr Gld Mnrs Bull 3X ETF, Direxion Shares Exchange Traded Fund Trust (NYSE: JNUG): $9.12, up 8.96 percent.
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