FX.co ★ Euro at 6-month high after Merkel’s statement

The euro rose 0.3% to 1.1236 against the US dollar, that is the highest mark since 9 November, 2016. The single currency jumped on Angela Merkel’s comments that the euro is too weak, MarketWatch said on Monday, 22 May.
Citing Germany’s Chancellor, the euro is weak due to the ECB policy and with this, German exports are comparatively cheap.
She also added that lower oil prices reduce the cost of imports and, consequently, the German trade balance reveals a surplus. “If oil were 50 percent more expensive, then we’d soon have a lot more imports,” Merkel said.
Manuel Oliveri, a forex strategist at Credit Agricole SA, claims that Merkel’s statement is unlikely to determine the euro exchange rate for a long time. He noted that the German Chancellor said no new information but rather obvious things. At the same time, expert at ING Groep NV Chris Turner expects the US dollar to suffer pressure as the political turmoil in Washington is likely to continue.