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The US President says the dollar will become strong and stronger in his typical hyperbolic style. He “wants to see a stronger dollar” and says his Treasury Secretary’s words: “a weak dollar is good for the US” were “taken out of context” although it is hard to understand Mnuchin’s comment differently.

The US dollar is jumping across the board:

The US dollar’s sell-off was quite stretched. Markets took every signal to sell and the bounces were limited. So, a correction is natural.

As Trump tends to use hyperbolic language and also tends to contradict himself, the big question is: do we have an opportunity to sell the dollar?

So far, this is a correction and not a change of course. Sure, the dollar could go up and up and Trump’s words could mark the turnaround point. But they could also be just a temporary rise within a bear market for the US dollar.

Here is how the move looks on  the EUR/USD 30-minute chart:

USD/JPY chart, showing a big rise: