Think back. Way back. All the way back to last April when Donald Trump told the Wall Street Journal the following about the dollar:
I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me.
That was on April 12, so let’s time stamp it:
“Problem” solved, sir! And all it took was nine straight months of degrading yourself and the office of the presidency. Who knew this was such an “easy” fix?!
Of course one of the things Trump was “concerned” about was trade, a concern he tried his best to express in the same article linked above when he said “look, there’s some very good things about a strong dollar, but usually speaking the best thing about it is that it sounds good.” Well, “usually speaking”, that quote doesn’t “sound good” primarily because it’s an egregious affront to good grammar, but what he was driving at is that a weaker greenback is good for trade.
- MNUCHIN SAYS WEAKER DOLLAR IS GOOD FOR TRADE
Needless to say, that was just fuel on the fire for dollar bears. Have a look:
This of course comes on the heels of this week’s protectionist lean that found Trump starting a solar panel/washing machine war with China and South Korea. Mnuchin’s rhetoric will only heighten trade tensions.
As for Draghi and Kuroda what can we say but, “sorry motherfuckers.” And maybe “good luck leaning any semblance of hawkish now”.
DXY below 90 now for the first time in a long time: