
When an official for the incoming US government stated that President-elect Donald Trump would refrain from enacting tariffs at his inauguration later that day, the dollar sank sharply on Monday, while European markets surged.
Following the Wall Street Journal’s story that Trump will not impose import tariffs immediately after taking office later on Monday, European share markets were firmly in positive territory in afternoon trading. All of the major indices in the region saw increases of about 0.5%, while the pan-European STOXX 600 increased by 0.3%. The MSCI All-World index was up 0.4% last time.
Compared to the currencies of the United States’ biggest trading partners, including the Canadian dollar, the Mexican peso, the euro, and China’s yuan, the dollar fell by as much as 1.3% at one point.
At a rally on Sunday, Trump pledged a “brand new day of American strength” before taking the oath of office at noon Eastern Time (1700 GMT). As a reminder of his unpredictable nature, he released a digital currency on Friday that surged past $70 before falling to about $50 as traders became concerned. He has also fuelled anticipation of an instant flood of executive orders.
Also Read:
Trump Declared his Intention to cancel Birthright Citizenship