The Greenback weakened overnight as US Treasury Secretary, Steven Mnuchin commented on the weaker Dollar being good for trade. This supports US President, Donald Trump’s belief that the Dollar is ‘too strong’ which is limiting US companies’ ability to compete. This morning he expanded on his remarks, mentioning there were both advantages and disadvantages of the Dollar’s current rate and he wasn’t concerned over the short term fluctuations. His comments helped the Dollar to decline to a three year low against the Euro.
The Euro rocketed as the ECB released their latest monetary policy summary. The ECB plan to keep quantitative easing running until the end of September, with the ability to increase the size and duration as needed if the outlook worsens. The statement also mentioned the QE will continue to run until the inflation path. However, the strengthening Euro is keeping inflation from reaching the targeted 2%.