Donald Trump and US CEOs

The US President met with CEOs of leading businesses yesterday to discuss where his government will invest in order to boost infrastructure. Trump suggested that he could be prepared to spend upwards of $1 trillion if the right opportunities present themselves. In order for the projects to have an effect in his Presidency he made it clear that if the “job wasn’t shovel ready in 90 days then he won’t invest, as it doesn’t help us”. Huge short term investment projects could become the way for Trump to fulfil his pledge of 25 million new jobs and boosting the US economy.

Trump and President Xi Jinping

President Donald Trump will tomorrow meet with Chinese Leader Xi Jinping at a golf club in Palm Beach. The two are expected to have serious trade discussions with Trump previous using twitter to suggest China were manipulating their currency to cheapen exports.

Whilst the conversations will take place firmly behind doors, Trump has formed a small reputation of being awkward around foreign leaders; two weeks ago not shaking Angela Merkel’s hand and earlier this week with Egypt’s President. Should these talks be constructive then the two largest global economies could become a serious force to contend with from a trade perspective.

US data today

This afternoon the Purchasing Managers Index will be released and is expected to show a small improvement on February. Later on this evening the FOMC Minutes will be released for the latest meeting providing an insight into the thoughts of committee members who vote on interest rate movements.

The next US interest rate hike is one of the main topics effecting currency markets at the moment so any new information can cause significant volatility. There is a general consensus of at least two further rate hikes this year, however depending on who you ask that number could be different. The minutes will at least be able to provide information on the economic climate and what the Federal Open Market Committee need to see before they act once more.

If you have any questions about this morning’s report, or would like to talk to someone about a currency transfer, please call 01494 725 353 and a member of our team will be happy to assist you.

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