April 12, 2017
President Trump made financial headlines today saying he wants to push again to repeal Obamacare before working on tax cuts. He also seems to be supporting existing monetary policy saying he likes low rates though he hasn't decided whether to reappoint Janet Yellen to a second term as Fed Chair (her term expires early next year). Sharp selling in the dollar was triggered after he also said the U.S. currency is getting too strong.
The day's economic data include as-expected results for import & export prices with March's decline in oil holding down import prices and rise in food prices pushing up export prices. Similar soft-to-steady readings are expected for both tomorrow's producer price report and Friday's report on consumer prices.
Stocks were on the defensive with the Dow slipping 0.3 percent to 20,591. The dollar index fell from its high near 100.80 before Trump's comments to 100.18 for a 0.5 percent dip on the day. Money continues to move into the safety of Treasuries where the 10-year yield fell 4 basis points to 2.26 percent which brings its weekly decline to a sizable 13 basis points. Oil fell 50 cents and is back near $53 despite a draw in weekly oil inventories. Gold added another $10 to $1,285 bringing its weekly gain to $35.