Late in the day we’re getting a headline from Trump who says “the dollar is doing great”.
He went on to say “I don’t think the dollar has declined too much” and that he’s not concerned about the decline and that it’s finding a fair level.
The market is taking that all as an endorsement of the recent US dollar selloff and it’s led to some massive stops in EUR/USD as it blasts through 1.2000 to 1.2068 in very short order.
Trump has long hinted that he’s in favor of a weak dollar, something he believes will help export competitiveness.
However the timing of his comments was unfortunate (or deliberate) as it comes at a time of broader questions about the US dollar and its sanctity at the center of the global financial system. Gold hit another all-time record today and Trump coupled his comments just now with a warning that Cuba will fall very soon.
That highlights the possibility of a war, which is also possible as he sails an armada towards Iran