WHAT A MESS FOR THE USD AND WILL THE USD GO TO $88 AFTER MARIO SESSION @ 9.30PM?
Mnuchin comment surprises financial markets, turns dollar decline into ‘one-way bet’
- The dollar, already on a spiral lower, sank to a three-year low after Treasury Secretary Steven Mnuchin said a weaker dollar was good for U.S. trade.
- The comments depart from the strong dollar policy of Treasury secretaries before him, going back to Robert Rubin in the Clinton administration, but fit with the Trump administration’s “America first” message.
- The weak dollar policy could backfire and make U.S. assets like Treasurys less appealing, and drive up the costs of foreign goods for businesses and everyday Americans.
- “They basically open this up as a one-way bet for traders, and traders will keep pushing it and keep pushing it,” said one strategist. Read More @ https://www.cnbc.com/2018/01/24/mnuchin-comment-surprises-financial-markets-turns-dollar-decline-into-one-way-bet.html
- 8.45pm – ECB will announce the rate – and we don’t expect any change. Little Volatility expected.
- 9.30pm – ECB will have a press conference and this will create a huge volatility as Mario Draghi will give a view on what will be their next move in terms of monetary policy – we believe the impact will be the same as BOJ.
Be cautious and have good money management at all times.
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