Thinly-veiled currency war around EUR/USD


Everything seems to be overshadowed by rhetoric out of Davos
Chief Investment Office25 Jan 2018
Photo credit: AFP Photo


Chart 1. Used with permission from Bloomberg Finance LP, as of 25 January 2018.


We take another look at EUR as we go into today’s (25 January) European Central Bank (ECB) policy meeting.

Everything seems to now be overshadowed by what happened overnight at the World Economic Forum in Davos, Switzerland. US Treasury Secretary Steven Mnuchin has clearly extolled the “America First” populist agenda, saying “obviously a weaker dollar is good for us as it relates to trade and opportunities”.

In short, Mnuchin has seemingly ignited a nascent currency war.

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