The dollar is looking strong this morning, and is up against both the pound and the euro. This comes after Treasury Secretary, Steven Mnuchin told reporters that the US benefits from the greenback’s standing as the world’s reserve currency, saying that he would not advocate a weak dollar policy.
US GDP data will be released tomorrow and an interest rate decision from the Federal Reserve will take place next week. It is now looking highly likely that they will cut rates by 25 basis points and it will be interesting to see if Europe follows suit.
In US-China trade news, it has been reported that Chinese tax cuts could offset the effects of the trade war for China. However, the US could still impose fresh tariffs if China don’t agree to a legally binding deal. We will hopefully see further developments when Steven Mnuchin travels to Beijing next week.
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