FX Update: The Dollar has come under broad pressure
FX Update: The Dollar has come under broad pressure at the inspiration of President Trump saying that he was "not thrilled" with the Fed for raising interest rates and that the Fed should do more to boost the economy. Whether Trump is serious or not -- whether he understands the fiat currency system and the necessity to raise interest rates to prevent the deleterious economic impact of inflation running out of control -- or whether he is merely signalling to his political base (the swamp-free businessman fixing the economy) are moot points, as the remarks have been taken as a Dollar selling cue by markets. The USD index (DXY) is showing a 0.4% loss heading into the London interbank open, building on yesterday's fall. The index posted a nine-day low at 95.45, which is the culmination of four straight days of declines. EUR-USD has concurrently lifted to a 12-day peak at 1.1543, putting some further distance in from last week's 14-month low at 1.1301. USD-JPY has managed to recoup to the lower 110.0s after carving out an eight-week low at 109.77. A buoyant session across most Asia-Pacific stock markets helped USD-JPY find a footing via having a weakening impact on the Yen, which is showing losses of 0.3% or more against the Euro, Sterling and Dollar bloc currencies. USD-JPY has still remained below yesterday's New York closing level. Stocks gained in Asia despite Trump saying that he did not "anticipate much" from the mid-level Sino-U.S. trade talks which start later today in Washington DC. The release of the RBA minutes from the August policy meeting didn't bring any surprises, and showed the central bank's concerns about the risks from trade tensions.