Is Trump Blinking on Tariffs?

A Washington Post report this morning shifts dollar demand onto its side.

Action to Take: Reports that Trump may take a more targeted approach to tariffs sparked a sharp dollar pullback this morning - a significant reversal from the trade fears that have weighed on markets since mid-December. While this shift could fuel a broader rally in risk assets, particularly in tech and crypto, we'll need to see sustained strength before getting too excited. Tight credit conditions persist, and institutional investors may still use any strength to reduce overweight positions. There will be $50 billion in corporate bond issuance this week alone. We’ll see the market’s tolerance on corporate lending very quickly to start the year.

Keep an eye on your inbox, and I'll update you when we get our first momentum shift of the year. With the dollar pulling back sharply this morning, we could see a rush of capital in the first half of the week, setting up a strong run into inauguration day.

Safe travels if you're heading out today—it's a whiteout in the Mid-Atlantic.

-------------…