White House: Rumors of Gary Cohn's resignation '100% false'

Tammy Harvey
August 21, 2017

Former Goldman Sachs President Gary Cohn, who serves as the director of President Donald Trump's National Economic Council, is under growing pressure to quit after Trump's moral equivocation on Tuesday between Nazis and the leftwingers who came to stop the Nazis in Charlottesville, Virginia.

"The stock market has a great tendency to look at geopolitical or political events, have a small pullback and then just shrug its shoulders", said Burns McKinney, chief investment officer in the Dallas office of Allianz Global Investors.

In late NY trading, the euro rose to 1.1758 USA dollars from 1.1744 US dollars, and the British pound dropped to 1.2874 USA dollars from 1.2879 USA dollars.

"We can hope something good comes from that", Cashin said.

The White House responded that Cohn has no plans to resign.

"If we do get another one or two weeks of risk-off, I would expect yen to be on the stronger side", said Tan Teck Leng, forex analyst for UBS Wealth Management in Singapore. Reports in early this morning of terror attacks in Barcelona are likely to impact sentiment on local markets, with futures dropping in the wake of the news.

When President Donald Trump launched into his press conference on Tuesday, it was chiefly to outline his vision for transforming the nation's aging infrastructure and energizing the USA economy. The USD/CHF is also down about 0.08% and trading at 0.9618 Swiss Francs, off the session low of 0.96075 Swiss Francs.

Dow Jones closed down by 0.35 percent, S&P 500 ended down by 0.19 percent, Nasdaq finished the day down by 0.09 percent.

The dollar index, which measures the greenback against six major peers, was down 0.17 percent at 93.462 in late trading.

The news followed a week heavy with speculation and focus on the White House.

The yield on the 10-year Treasury note fell to 2.18% by 4 p.m. ET, a 10 basis point drop from the high point early Wednesday.

The S&P 500 on Friday lost 4.46 points, or 0.18 percent, to close at 2,425.55, falling 0.6 percent from 2,441.2 on August 11. White House chief strategist Stephen Bannon told American Prospect magazine that he's often at war with Cohn and other officials over issues such as whether to combat China over trade policy, among others.

Dollar sales against the yen accelerated also because the Japanese currency increased its safe-haven appeal following the Barcelona attack, for which the Islamic State militant group has claimed responsibility.

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