Christin Tuxen, chief analyst at Danske Bank, points out that EUR/USD was temporarily roiled yesterday by a Trump tweet claiming the EUR (and other currencies) were too weak, hurting US competitiveness.
Key Quotes
“We stress that EUR/USD is a matter for the ECB and Fed and that Trump has little leverage here; hence, Trump’s FX comments should be disregarded. Furthermore, if Trump slams the EU car industry with tariffs, we are likely to see an even lower EUR/USD.”
“More importantly, EUR/USD has become more sensitive to US data given the uncertainty around Fed pricing. It means the outcome of today’s CPI release bears watching. On the margin, we think there is a possibility of a weaker figure, which could push EUR/USD higher on the day.”
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