President Trump wasn’t thrilled by this morning’s selloff in the euro, and for the first time, is lashing out at ECB chief Mario Draghi for the first time, accusing Draghi in a tweet of intentionally manipulating the value of the shared currency.
Mario Draghi just announced more stimulus could come, which immediately dropped the Euro against the Dollar, making it unfairly easier for them to compete against the USA. They have been getting away with this for years, along with China and others.
— Donald J. Trump (@realDonaldTrump) June 18, 2019
Earlier, Mario Draghi sent the euro tumbling and German yields to record lows when he said that rate cuts or more asset purchases could be part of the central bank’s toolkit for fending off a recession.
Jerome Powell might be breathing a sigh of relief now that another central banker has, at least temporarily, taken his place in Trump’s cross hairs. However, we would urge him to wait for the inevitable part II later this week, where Trump slams the Fed for not cutting rates or being sufficiently dovish, which would have the added benefit of weakening the dollar.
The euro spiked following Trump’s tweet.
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