While Trump’s latest Powell lashing on twitter was most notable for the dramatic criticism of the Fed chair, after Trump said “My only question is, who is our bigger enemy, Jay Powel or Chairman Xi?”, what was far more interesting in the Trump tweet and what got far less attention, was Trump’s disclosure that the Fed is speaking “without knowing or asking what I am doing, which will be announced shortly.“
The question, of course, is what will Trump be announcing that the Fed is still not privy of, with speculation spreading among trading desks that, as discussed last night, Trump may have had enough of a soaring dollar, which just hit an all time high against in trade weighted terms, and will instruct the Treasury’s Exchange Stabiliziation Fund to intervene, potentially by buying yuan in the offshore market, to devalue the USD against the Chinese currency.
Sure enough, one look at the suddenly plunging dollar and it’s immediately clear that traders are suddenly terrified that the US may take aggressive – and unilateral – action against the USD “shortly.”
via ZeroHedge News https://ift.tt/2NsL3ai Tyler Durden