Trump Comments Send Dollar Lower

The dollar weakened and gold advanced with bonds after the President-elect said the U.S. currency is already “too strong.” Stocks declined as traders braced themselves for British Prime Minister Theresa May to set out her plan for leaving the European Union.

The greenback fell against most major currencies after Donald Trump told the Wall Street Journal its value is too high in part because China holds down its currency. U.K. and European equities retreated a second day before a speech by May, in which she is expected to say Britain is likely to pull out of the EU’s single market for goods and services and seek a completely new trading relationship with the bloc. The Bloomberg Commodity Index rose to the highest since July on a closing basis.

Bloomberg

GBP/USD – Pound Jumps on Strong CPI, May Speech on Brexit Next

Globalization Not to Blame

MS

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.