Trump Tells Global Leaders: ‘America First Does Not Mean America Alone’

One day after President Trump told CNBC the dollar will strengthen over time under his leadership, he delivered a speech at the World Economic Forum. In his speech to global political and business leaders, Trump warned against countries trying to “exploit” others through trade agreements.

Trump also promoted the American economy while urging international businesses to invest after what he calls a “resurgence.”

In warning countries against trying to “exploit” other nations through trade, he reiterated that he would look out for “America first.” However, he aimed to reassure the global leaders that “America first does not mean America alone,” and said a strong American economy would lift other countries.

The globe is “witnessing the resurgence of a strong and prosperous America,” he said.

Trump further added, “Now is the perfect time to bring your business, your jobs and your investments to the United States.”

The President went on to further say that “The United States will no longer turn a blind eye to unfair trade practices.” Additionally, “We cannot have free and open trade if some countries exploit the system at the expense of others.”

Finally, Trump said when the U.S. economy grows, “so does the world.” He also said that countries worrying about their citizens first helps them take care of the needs of the “forgotten.”

U.S. Dollar

The U.S. Dollar finished lower against a basket of major currencies on Friday, continuing to react to bruising comments from Treasury Secretary Steven Mnuchin earlier in the week. Also pressuring the Greenback was data that showed U.S. economic growth unexpectedly slowed in the fourth quarter.

U.S. Economic Data

U.S. fourth-quarter gross domestic product increased at a 2.6 percent annual rate, held back by a modest pace of inventory accumulation. Economists were looking for a 3 percent increase.

Core Durable Goods Orders came in at 0.6%, beating the 0.5% estimate. The previous month was revised upward to 0.3%. Durable Goods Orders rose 2.9%, well above the 0.9% forecast. The previous month was revised upward to 1.7%.

Gold

Gold futures continued to push towards the highs of mid-2016 and threatened to break out to levels not seen since 2013 on Friday in response to a weaker U.S. Dollar. The market also recovered most of its loss from Thursday.

Gold hit a 17-month high earlier in the week after Mnuchin said he may support a weaker dollar. However, prices were hit hard the next day after President Trump said that he wanted a “strong dollar.”

Crude Oil

U.S. West Texas Intermediate and international-benchmark Brent crude oil futures closed higher on Friday after hitting fresh three-year highs the session before. Weakness in the dollar continued to contribute to the market’s gains. Crude oil is a dollar-denominated commodity so it tends to rise from increased foreign demand when the dollar weakens.