USD ended a rough week languishing close to lows back to Dec 2014 - Westpac

The USD ended a rough and tumble week languishing close to lows back to Dec 2014 and in the midst of the worst January back to 1987 after Trump added to confusion over US dollar policy, explains the research team at Westpac.

Key Quotes

“US yields closed at highs back to Jan 2014 while US equities are having their best start to the year since 1987.”

“President Trump's Thursday comments that he wanted a "strong dollar," a day after Treasury Secretary Mnuchin said a weaker dollar would help the US, provided only a short term respite for the USD. Secretary Mnuchin clarified his earlier Davos comments again early Friday too, saying, “they were completely taken out of context,” and weren’t meant to violate the U.S.’s commitment to refrain from competitive devaluation, but the comments had no real impact on the USD either.”

“President Trump’s speech in Davos – the first by a president in 18 years – did not break any new ground. He declared the US open for business and that his “America first” policies would help the world.”