Tuesday, January 31, 2017

Trump Adviser's Bullish Euro Call Joins A Long List of Predecessors The Believes They're Smarter Than The Market

The Euro rallied against the dollar on bullish comments from the head of Trump's recently formed National Trade Council. Peter Navarro called the Euro grossly undervalued. Traders, forgetting that politicians have no idea how to read the message of the market, rushed to buy the Euro today, thus, reinforcing the old saying, who's more foolish, the fool or fool that follows him?

The Euro, mired in Consolidation (C/P) since the second week of December, is slowly accumulating energy to resume its downtrend.  The short-covering rally, a move following the intentions of the invisible hand rather than politicians,will slow as DI concentrates.  The trends and discussion of them are available to subscribers.

Headline: Dollar falls after Trump adviser calls euro ‘grossly undervalued’

The U.S. dollar fell against the euro and its other major rivals on Tuesday, pressured by President Donald Trump’s latest policy moves and views on the currencies market. Traders also were awaiting the conclusion of a two-day policy meeting of the Federal Reserve, which could influence currency trading.

The dollar took a hit against the euro, climbing to its lows of the session after Peter Navarro, the head of Trump’s recently formed National Trade Council, called the euro “grossly undervalued.” The comments followed a statement by Trump earlier this month, when he said the dollar had gotten “too strong.” Together, the statements suggested the new administration is focusing on currency as part of its hard-charging approach on trade ties.



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