Yesterday, the markets once again reminded that the expensive dollar is not interesting to the US. In an interview with CNBC, Donald Trump said that the US currency has become too strong due to the high expectations concerning of the reforms, which plans to hold President of the United States of America. Trump also said that he was quite satisfied with the policy of the Federal Reserve, which keeps interest rates low. Negotiations with Xi Jinping seem to have gone well, because the US president said he wouldn’t call China a currency manipulator.
Interview with Donald Trump led to a sharp decline the US dollar index from the level of 100.8 to almost 100 basis points, forcing the greenback to weaken against the basket of major currencies. Even the commodity currencies, despite the decline of oil quotes, finished the day in positive territory against the US dollar.
In addition, today will be data of Unemployment Claims, which are expected above past values, and, looking from the past NFP, the results may even exceed forecasts. Tomorrow will be published Core Consumer Price Index, and if inflation will show a deceleration, the US dollar may weak even more in the end of the week.