US President
Donald Trump's trade adviser Peter Navarro told the Financial Times that
Germany is using a "grossly undervalued" euro to its advantage
against other nations in the European Union and against the United States.
The euro
jumped after the report crossed the wires, and touched a five-day high of
1.0764 against the dollar.
It is up by
0.6% to 1.0763 against the dollar as of 7:48 a.m. ET.
"A big
obstacle to viewing TTIP as a bilateral deal is Germany, which continues to
exploit other countries in the EU as well as the US with an 'implicit Deutsche
Mark' that is grossly undervalued," Navarro, the head of Trump's new
National Trade Council, told the FT on Tuesday.
The
Transatlantic Trade and Investment Partnership, or TTIP, is a proposed trade
agreement between the EU and the US.
Last week,
Ted Malloch, the man who is tipped to become the US ambassador to the EU, told
the BBC that the euro "could collapse" in the next 18 months.
"The
one thing I would do in 2017 is short the euro," Malloch told BBC. "I
think it is a currency that is not only in demise but has a real problem and
could in fact collapse in the coming year, year and a half. I am not the only
person or economist of that point of view."
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