Dollar tumbles even lower as Mnuchin endorses weak dollar

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US Treasury Secretary Steven Mnuchin says that a weaker dollar is ¨good for the US”. This is very different from the “strong dollar policy” that his predecessors from both parties traditionally had over many decades.

The US dollar is falling against all currencies, extending the losses across the board.

Mnuchin is speaking in Davos, Switzerland. He was also encouraged by the market acceptance of the tax reform and dismissed worries about China’s buying of US Treasuries.His comment about the weak dollar certainly has an impact:

Here is how things look on the EUR/USD chart. It seems like the only way is up for the pair, which is down for the dollar.

The greenback was able to ignore the government shutdown but if teh US government pursues a weaker exchange rate, a clear change from the past, the dollar reacts.

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About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

4 Comments

  1. The big moves are already planned base on long term fundamentals, casual news are used as an excuse to move the price and hide the truth

      • It will depend for each asset, I say it because I always see that analyst try to justify every move they see on the price, but the way big banks make the market is through accumulation and directional moves later on, they use short term news as the excuse and all the analyst in fx street and other places the appear rationalizing the moves, relating the news with the moves, I would like to see analysis that look at the long term picture and not to the short term volatility, regards