The US dollar is falling quite freely as President Donald Trump says the US dollar is too strong. The move comes as the Administration refrains from labeling China as a currency manipulator. It seems that his comments come as a compensation to breaking his election promise. He says that he doesn’t want to blame China because it would hurt talks about North Korea.
Regarding the strength of the greenback, he “takes” the blame:
I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting-that will hurt ultimately
Confidence goes both ways. As he entered the White House, the US dollar lost momentum on the Donald Disillusion.
Trump also says he favors low interest rates. Will he keep Janet Yellen in her position? For now, he says it is too early to tell.
The move is quite wide. Here is USD/JPY, which is extending its losses, after
- EUR/USD is above resistance at 1.0660.
- GBP/USD tops 1.25 and goes all the way to resistance around 1.2540.
- USD/JPY is extending its losses, after tripping over 110 earlier this week. (see chart below)
- USD/CAD which was already sliding on some optimism from the Bank of Canada is dropping to 1.3250.
- AUD/USD regains the 0.75 level and trades at 0.7515 ahead of the jobs report in Australia.
- NZD/USD is licking its wounds around 0.6960.
more coming
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