Dollar Wins As Trump Turns Back On Dollar Policy
EUR / USD fell to lowest level of the day, now below 1.0800, testing support for the lowest of the week at 1.0785, with the support region around 1.0767-78 being an element key to watch before today’s daily close.
The pair’s latest lower boost comes as US President Trump has argued for a stronger dollar, saying it is now “the perfect time” for that to happen.
Although the dollar is gaining ground on the political turnaround, it’s hard to imagine that this is the point where the currency will run away with major gains overall.
In the longer term, the dollar will still be largely driven by risk more than anything else as we navigate the coronavirus crisis.
If we go beyond that, the dollar will surely face big hurdles – especially since Trump is calling for negative rates in addition to the multitude of easing measures the Fed has already introduced in the past two last months.
Trump may be “happy” that the dollar is holding up while printers are working overtime now, but you must be wondering how happy he will be if the dollar strengthens amid potential new stock market liquidation .