Trade Deals, Not Wars; USD Erases Loss as Tensions Ease
Published April 13, 2018
Donald Trump says he’s willing to “renegotiate forever” on NAFTA, a threat that comes as his trade office again softens its marquee demand for changes to the auto sector. The US is said to drop its proposed content requirement to 75%.
Trump says China tariffs may not happen; dollar erases loss. Oil has pared earlier rally spurred by Syria tensions and EIA outlook.
EUR/USD has pared most of its gain yesterday after dovish tones by the ECB. Minutes show that members are worried about a US trade war and strong euro. ECB is planning to continue its bond buying program and has not mentioned any specific date for winding up quantitative easing.
Saudi Aramco made $33.8 billion in first half of 2017. A tougher royalty regime imposes higher taxes as oil prices rise. Aramco is a cornerstone of the global economy, producing and selling 10 million barrels of oil every day.
Trump ordered officials to take another look at a TPP deal, saying a trade deal would be ‘easier to join now’.