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Trump’s right on the money: IMF finds the US dollar is overvalued, the Euro is undervalued for Germany
"Whilst Trump has never been the biggest fan of the IMF, he may very well be now!"
Trump just attacked Mario Draghi — accusing the European Central Bank chief of manipulating the euro
Draghi pledged stimulus if conditions don't improve. The lower euro is "making it unfairly easier for them to compete against the USA," Trump tweeted.
After weeks of wrangling, the two parties agreed to allow Italy to run a budget deficit of 2.04% next year. Stocks and the euro gained on the news.
The budget proposes increasing both Italy's overall government debt and its deficit in the short run, pushing the deficit as high as 2.4% of GDP over the coming years. This means Italy will fall foul of a previously mandated deficit level of 0.8% of GDP maximum.
One analyst said a pattern is starting to emerge showing "the president willing to talk the USD lower whenever it starts to look a bit toppy."
"The fears of a no-deal Brexit have piled the pressure on the pound and the dollar’s rally has come as a sucker punch," Neil Wilson, the chief market analyst at Markets.com, said in an email.
Sterling has hit a fresh 11-month low against the dollar on Thursday amid continued fears over the prospect of a 'no deal' Brexit.
Lukman Otunuga, a research analyst at FXTM, said in an email: "Concerns of a potential hard Brexit scenario have haunted investor attraction towards the Pound and have left the currency vulnerable to downside shocks."
The pound hits 11-month low after UK minister says there’s a 60% chance of Britain crashing out of the EU with no deal
UK International Trade Secretary Liam Fox said in an interview published on Sunday that the chance of a no-deal Brexit — where Britain leaves the EU without a deal on future trading arrangements — had risen from 50% to 60%.
The euro slid versus the dollar Thursday after the European Central Bank said it would end its €2.5 trillion bond-buying program at the end of the year and expects to keep rates steady through next summer.