Dollar Gains After Mnuchin Walks Back Trump FX Tweet As "Warning Shot"

After tumbling yesterday following President Trump's FX manipulator tweet, the Dollar Index rebounded overnight (on a collapse in German economic confidence) and is extending gains now after Treasury Secretary Mnuchin told CNBC that Trump's tweet was not a signal for a weaker dollar but a "warning shot" to Russia and China not to devalue their currency in the future.

The initial gains overnight in the USD were due to EUR weakness after ZEW survey showed economic expectations in Germany have collapsed to 6 years lows...

But then Mnuchin rescued the dip (for now)...

 

As a reminder, and as Mnuchin acknowledged, both have sen their currency's strengthen in the past year or so...

And that is apparently the way President Trump wants it to stay.

Comments

eclectic syncretist Pandelis Tue, 04/17/2018 - 08:47 Permalink

Just taken at first blush face value Trump/Munchkin seem to be saying that we don't want the dollar to fall, but we want it to weaken relative to the Russian Ruble and the Chinese Yuan.

It sounds like they would highly approve if Russia and China started stockpiling gold, and would begin to openly brag about the vast extent of their reserves so that their currencies would appreciate????

In reply to by Pandelis

Dilluminati Tue, 04/17/2018 - 08:14 Permalink

AMMAN (Reuters) - A false alarm led to Syrian air defense missiles being fired overnight and no new attack on Syria took place, Syrian state media and a military commander said on Tuesday.

https://www.reuters.com/article/us-mideast-crisis-syria-airbase/syria-s…

Another false flag Hoax by guess who?

Last night was hysterical in the bots comments.

Some people going as far as to say air defense did this or that..

complete nonsense

 

Fiat Burner Tue, 04/17/2018 - 08:21 Permalink

These fucks wage war against Russia with economic sanctions which crushes the ruble, but then have the audacity to turn around and say that Russia is manipulating the ruble lower.  

Wild Bill Steamcock Tue, 04/17/2018 - 10:01 Permalink

If 140 characters printed online on a whim sends Forex into disarray, tell me again how it's a functioning economic and financial entity?  Can't wait for it all to implode and those in charge are held accountable and justice served.

Yen Cross Tue, 04/17/2018 - 10:22 Permalink

  I told you guys it was time to short the euro. Probably take out the 200 hour average in the next 24 hours.

 Horrible macro again from Germany and China.