Mnhucin speaks in Davos again, referring to his comments yesterday
- "My comment on the dollar was clear"
- Not concerned about where the dollar is in the short-term
- "We believe in free currencies"
- Wants fair economic competition and reciprocal trade
- US doesn't want to enter trade wars
- "We are looking to defend American economy interests"
- Tax cuts make investing in the US very attractive
- Has consistently said where the dollar is in the short-term reflects a very liquid market
- Long-term level reflects strength of US economy
- Thinks that the US has very good open dialogue with China
- Working with China on issue of trade deficit
- US and China agree on reducing the trade deficit between the two countries
US commerce secretary Wilbur Ross is also speaking to reporters, saying that a WTO representative conceded that the trade system needs to be modernised and changes - which includes the dispute resolution mechanism.
Markets reacting a little wildly on his comments. EUR/USD spiked up to 1.2440 before now settling just above 1.2430. Cable also got a bit of a jolt above 1.4270 and USD/JPY now back below 109.00 again.
He's going in circles and coming back to the dollar comments again. The market isn't too phased by the second round of comments on the dollar. But generally, the dollar is still weaker than before he spoke.
