Forget taxes, has Abe come to America bearing gifts?
Another round of headline risk is upon us with Abe's meeting with Trump. There's a lot of expectation that Abe will present a massive US investment package to Trump.
We've had figures of $400-500bn thrown around about a US and Japanese investment and employment plan that could create 700k jobs.
The FT today claims that Abe has asked Japanese firms to detail any US investment plans and wants them in a "tweetable" figure to give to Trump (how thoughtful).
We've got some sort of bar set on the expectation front so something might already be priced in. However, given the reaction to Trump's tax comments yesterday, don't be surprised to see traders jumping on any decent growth boosting numbers offered by Abe. USD bulls don't need a second invitation to make hay while the sun shines.
Abe will want to give something solid to Trump but if he falls short of expectations, a drop in the buck is likely to be fodder for the dip buyers.
