The White House says Geithner was repeating comments Obama made during the campaign. The spokesman says the US needs to take a comprehensive approach to China, including currency issues. the spokesman said they will release a currency report on China this spring.
The Administration has to release a semi-annual currency report in April, but if they release a report specific to China, that implies that they will in fact be branded a “currency manipulator”. It is hard to tell just from the headlines, but this could be a further provocation toward China.
EUR/USD trades at 1.3136 but could rally if the market sees this as a further poke at China.
