Winners And Losers From Trump's U.S. Dollar Comments

The PowerShares DB US Dollar Index Bullish UUP is down 0.8 percent on Tuesday following surprising remarks from President-elect Donald Trump. Trump told the Wall Street Journal that the U.S. dollar is “too strong” and the fact that China’s currency is “dropping like a rock” makes it difficult for U.S. companies to compete with Chinese companies.

Is Trump The End Of USD's Bull Run?

In the past, Trump has accused China of being a currency manipulator, and the implication that he will take on the issue once in office has the dollar trading down.

Traders concerned that Trump may usher in an end to the dollar bull market have plenty of investment options out there.

Investor Options

First, a falling U.S. dollar is typically good news for commodities. For example, the SPDR Gold Trust (ETF) GLD is up 1.3 percent on Tuesday.

Dollar weakness would mean relatively strong performance from international currencies as well. The WisdomTree Dreyfus Emerging Currency Fd CEW provides exposure to eleven different international currencies.

In addition, investor can also buy shares of the inverse Powershares Db Us $ Index UDN.

When it comes to stocks, U.S. companies with the most international business are best-positioned for a falling dollar. These companies include Wal-Mart Stores Inc WMT, McDonald’s Corporation MCD and The Coca-Cola Co KO.

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Posted In: Long IdeasNewsEducationWall Street JournalPoliticsForexMarketsMoversMediaTrading IdeasGeneralDonald Trump
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