US President Trump Not “Talking Down” the USD

US President Trump Not “Talking Down” the USD

US President Trump Not “Talking Down” the USD


US President Donald Trump is “absolutely not” trying to talk down the strength of the USD, Treasury Secretary Steven Mnuchin was quoted as saying Wednesday.

Trump said last week in an interview with the WS-J that the dollar was “getting too strong,” and backed away from labeling China a currency manipulator.

Secretary Mnuchin played down that comment on the USD in an interview published late Monday in the FT.

In a more detailed version published Wednesday, he directly rejected the idea that President Trump was trying to talk down the dollar, saying “Absolutely not, absolutely not.”

The US gained after Mnuchin’s initial remarks late Monday.

But Wednesday the EUR hit a 3-week high as the USD was weakened by doubts over a fiscal boost promised by the President and by the pricing out of bets on 3 more Fed interest rates hikes this year.

Secretary Mnuchin also said The Trump Administration did not deem foreign countries to be manipulating their currency if they did so in a way that benefited Washington.

“To manipulate a currency you have to be doing it to disadvantage the United States,” he said.

Finance ministers and central bank chiefs meet in Washington this week for the International Monetary Fund’s (IMF) twice-yearly meetings. Secretary Mnuchin said addressing currency swings was “one of the IMF’s most important roles.”

Wednesday the US Dollar (.DXY) Index finished +0.26% at 99.76 $EURUSD -0.09% to 1.0721 $GBPUSD -0.40% to 1.2789 $USDCHF +0.14% at 0.9976 $USDJPY +0.35% at 108.80.

Wednesday, the US major stock market indexes finished at: DJIA -118.79 at 20404.49, NAS Comp +13.56 at 5863.03, S&P 500 -4.02 at 2338.17

Volume: Trade on the NYSE came in at 975-M/shares exchanged.

  • NAS Comp +8.9% YTD
  • S&P 500 +4.4% YTD
  • DJIA +3.3% YTD
  • Russell 2000 +0.8% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Neutral (-0.12) Bearish (-0.37) Neutral (-0.17) Neutral (0.17)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Neutral (0.07) Neutral (-0.17) Neutral (-0.04) Bullish (0.42)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.35) Bullish (0.25) Bullish (0.31) Very Bullish (0.50)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Neutral (-0.18) Neutral (0.14) Bearish (-0.46) Neutral (-0.21)

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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