USD: Weakness in play – Rabobank

Analysts at Rabobak explain that the EUR/USD climbed above 1.24 yesterday, as US Treasury Secretary Mnuchin added to USD weakness by saying that he is not concerned about the dollar and that a weaker currency is good for trade.

Key Quotes

“He added that longer term the strength of the dollar is a reflection of the strength of the US economy and the fact that it is and it continues to be the primary currency in terms of the reserve currency. Mnuchin spoke to reporters in Davos and is part of a large US delegation to the World Economic Forum. Mnuchin and Commerce Secretary Ross defended the America First agenda and said that that more trade actions were to come. Ross said that US trade actions were provoked by inappropriate behaviour on the part of US trading counterparties.”