USD crosses little moved – Danske Bank

USD crosses were little moved by comments from US President Trump’s new economic advisor, Larry Kudlow, that one should “buy King dollar and sell gold”, points out Christin Tuxen, Chief Analyst at Danske Bank.

Key Quotes

“Kudlow is a former investment bank economist and best known for his CNBC appearances – one in which he yesterday confirmed that he is a hardliner on trade and protectionism and offered the above - mentioned ‘trading recommendation’. He went further to comment on monetary policy, saying the Fed should not ‘overdo’ it in terms of raising interest rates. While the US now has a top economic advisor advocating that a “ great country needs a strong currency” and that “ stability is key”, speculation that the US Treasury could abandon its ‘strong dollar’ policy may fade. However, in our view that does not change the fact that the fiscal policies being pursued are USD-negative via the deteriorating effects on the US ‘twin deficits’.”