USD Dumps After Treasury Sec Nominee Mnuchin Warns Of "Excessively Strong" Dollar

Tyler Durden's picture

In Treasury Secretary nominee Steven Mnuchin's written responses to Senate questions, he made it clear that the "strong dollar" policy may not always be his priority as he noted "an excessively strong dollar may be negative in the short-term."

“The strength of the dollar has historically been tied to the strength of the U.S. economy and the faith that investors have in doing business in America,” Mnuchin said in written responses to questions from U.S. senators obtained by Bloomberg News.

 

“From time to time, an excessively strong dollar may have negative short-term implications on the economy.”

Additional headlines include:

  • *MNUCHIN REPLIES TO SENATE IN DOCUMENT OBTAINED BY BLOOMBERG
  • *MNUCHIN: TREASURY HAS RANGE OF TOOLS TO ADDRESS UNFAIR TRADE
  • *MNUCHIN: WILL ENSURE WEALTHY TAXPAYERS CAN'T GAME TAX SYSTEM
  • *MNUCHIN: WILL ADDRESS ISSUE OF CURRENCY MANIPULATION
  • *MNUCHIN: `EXCESSIVELY STRONG' USD MAY BE NEGATIVE IN SHORT TERM
  • *MNUCHIN: U.S. IMF FUNDS MUST BE USED IN LINE WITH POLICY GOALS
  • *MNUCHIN: WOULD ENFORCE EXISTING SANCTIONS AGAINST IRAN, RUSSIA
  • *MNUCHIN: WOULD CONSIDER ALL OPTIONS FOR INFRASTRUCTURE SPENDING

The reaction is clear in USDJPY...

 

The Dollar Index has dropped below 100 for the first time The ECB's December meeting...

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cowdiddly's picture

Told you. dollar gets it right in the pussy

38BWD22's picture

 

 

Even with Trump, I would advise everyone to own some physical gold.

Justawhoaman's picture

Now more than ever.  Trump still has to deal with the FED and the Banksters who are not part of his team.

Countrybunkererd's picture

The way i figure, if they blow it up, Trump team goes gold standard.

Escrava Isaura's picture

Again, if the US data is supposed to be Great Again, how will the secretary make the dollar weak?

One contradicts the other.

Also, the US is importing over 9 millions barrels of oil a day. Will Americans afford another $1/$2 dollars a gallon?

 

BaBaBouy's picture

Best INsulation For Your Backyard Rose Garden ~ GOLD ~~~

Countrybunkererd's picture

an hour after ZH posts about how strong the dollar is.... they read ZH?  If not, it still shows the strength of ZH.  Good work tylers.

swampmanlives's picture

About 2-5% of your portfolio should be gold.

Gold_Member's picture

I mean I'm comfortable with 85% silver miners and 5% Gold but hey who's counting.

The Real Tony's picture

I'll stock to physical gold and physical silver. Only a total idiot would buy gold and silver stocks that are around 400 percent overvalued. You're much better just buying the underlying metal not the stocks.

the edge of chaos's picture

400% over valued? WTF...unless you are planning on a COMPLETE COLLAPSE of society then the Miners will move up in multiples of the spot price. At current prices the miners are drasticly under valued.

Spike8877's picture

Yes look at china they hold lots of PM and bitcoin their yaun is In the SDR basket as of oct 1 2016.

Watch out!!!

I would put 90% into silver.  Its going to sky rocket based on a whole bunch of factors. One being PM rigging, other one bounds coming back in droves thanks china i wounder why ther are doing that hmmm lol.

new game's picture

800 ad -silver was the determinate of money wealth. land holding was subject to government taking for crimes determined by the church(gov).

silver ho yo fool...

Haus-Targaryen's picture

Jawboning is akin to slow torture.  

Wonder what the currency would do if he got up there "Yes, well the actual value of the dollar is zero because it isn't backed by anything.  All currencies of this type eventually fail.  Next question ..."

SomethingSomethingDarkSide's picture

You're too smart to say the dollar's value is zero!  It's a commodity token of exchange, of course it has value, they just need to stop making so many fucking tokens.  But, they won't, so here we all are stackin' away.

Spike8877's picture

lol want to see some thing funny?

Walking Dead Chappelle's Show - SNL

  

https://www.youtube.com/watch?v=EG0wQRsXLi4


Spike8877's picture

lol want to see some thing funny?

Walking Dead Chappelle's Show - SNL

  

https://www.youtube.com/watch?v=EG0wQRsXLi4


AlexCharting's picture

I am starting to like Mnuchin... keep pounding the dollar and boost me GOLD!

Uzda Farce's picture
Uzda Farce (not verified) AlexCharting Jan 23, 2017 6:21 PM

Steven Mnuchin succeeded his father as a Goldman Sachs partner, rising to vice-president. He is also a member of the Skull and Bones society, along with his Yale roomate and fellow Bonesman Eddie Lampert, another ex-Goldmanite and CEO of Sears Holdings. See this transcript from the recent Mnuchin confirmation hearing:

http://wolfstreet.com/2017/01/20/sears-bankrupcy-who-gets-real-estate-pe...

The Real Tony's picture

Problem is gold should already be 5,000 to 10,000 dollars an ounce. I'm certain the FED and bankers very soon will monkey hammer the shit right out of all the suckers they lured or fished in. Every year for the past 6 years gold and silver looked good in January and February. The FED and bankers have the same playbook and will rake the holders of gold and silver over the coals very, very soon.

10mm's picture

It will eventually rise,no doubt. If at anytime to back up the truck, Stack em high, is now.

SomethingSomethingDarkSide's picture

Yenpacolypse - did you kiddies buy your NUGT's? 

 

It would appear The Chinks no longer need to prop this hydrogen zeppelin.

Gold_Member's picture

Sir Yes Sir!  JNUG and NUGT all accounted for.  We are cleared for takeoff.

Raffie's picture

UDS needs to be around low 90's

hotrod's picture

Wait, Everyone said to go Long the USD because 4 rate hikes were coming and the border tax was a done deal and Trump etc.  Are you tellin me rates are going down too and bonds up. WTH  I thought the bond market was toast

FrenchTrader's picture

25bps move... 

a more interesting story would be how the big banks arb the balance sheet and do jpy x-ccy swaps all day long for a free profit.

swampmanlives's picture

The real question here is how much is Goldman making off their insider Mnuchin's comments? Perhaps he let's them know before he releases them?

TAALR Swift's picture

Make Gold Great Again

WillyGroper's picture

twitchy gonna give us a 30% deval.

hoopsiouzip's picture

Stop the games. Munchkin Donuts should name what the dollar should be. Is it zero or maybe 80.34 - stop being vague and get us back to reality. Better yet put us on the Gold Standard.

moorewasthebestbond's picture

Stevie the foreclosure carpetbagger!

MASTER OF UNIVERSE's picture

I called the top on USD five [count em'] days ago. And that was before everyone else, and the articles stating the same.

 

T.S. is slow as snails.

Gold_Member's picture

JNUG TO THE MOON BABY! 

I love... gold.

 

U4 eee aaa's picture

A weaker dollar makes imports more expensive and exports cheaper for foreigners. This keeps Americans buying locally and thus increases jobs and economic activity at home. It is an easy way to game the local economy but there is no reason to think they won't use this. Up here in Canada, they have been doing this for a couple decades.

The Real Tony's picture

A weaker dollar outside of the U.S. dollar also makes everyone go broke, something Poloz up in Canada is 100 percent clueless about. He'll figure it out soon enough when the Canadian dollar hits 50 cents U.S. in the next year or two.

U4 eee aaa's picture

It is not the low dollar that will make us broke, it is the debt. The BoC is failing not because it hasn't raised interest rates to increase the value of the dollar. The BoC is failing because it hasn't raised interest rates to curb excessive borrowing. A distinction with a difference

FlipSide's picture

A weaker dollar also means more tourists coming here to take advantage of the lower dollar.

realWhiteNight123129's picture

Trump wants to balance trade at all costs. Because you balance trade, you bring income back to the US, to stop teh foreign debt accumulation and by the same token (because that is the mathematic flip-coin) you also stop the gov deficit hemorragy.

Trump is not a nice guy. He is only thinking about his own interests. That means he knows that if the people suffer too much, that could end up in a revolution where the rich and ruling classes get their heads chopped. So he is dead serious about improvig hte lot of hte common man, because that removes teh risk his kids and grand kids get slaughtered during in a revolution.

 

rickv404's picture

We're going to get a weaker dollar. Once they pass that trillion dollar infrastructure BS the dollar is going to be much weaker.

twittering as stocktradr's picture

POTUS DJT needs to do a KC & The Sunshine Band  on the Market - Shake, Shake, Shake.  So we can make some money.  https://www.youtube.com/watch?v=xWxLc555sgU&list=RDxWxLc555sgU