Dollar falls as Trump aide attacks Germany

Donald Trump's top trade adviser accuses Germany of exploiting 'grossly undervalued' euro. FTSE falls as Wall Street retreats. 

(Update) Donald Trump's top trade adviser has sparked a rally in the euro after accusing Germany of using a 'grossly undervalued' euro to exploit the US.


Speaking to the Financial Times, Peter Navarro (pictured), the head of Trump's National Trade Council, said Germany 'continues to exploit other countries in the European Union as well as the US with an "implicit Deutsche Mark" that is grossly undervalued'.
The comments sparked a jump in the euro, which rose nearly 1% against the dollar to $1.0794, as investors anticipated action from the US over the issue. The pound gained 0.8% to $1.2582 against the weak greenback.
It's not the first time that the Trump administration has weighed in over the problems created by the strong dollar. Earlier this month, Trump said the dollar's elevated level was hurting the US's competitiveness with China.
'Our companies can't compete with them now because our currency is too strong. And it's killing us,' he said in an interview with the Wall Street Journal.
These interventions have helped to leave the dollar on course for its worst start to the year since 2008.
The euro had earlier shown little movement after figures showing eurozone growth of 0.5% in the last three months of the year, and inflation moving sharply higher to 1.8% after a rise in energy costs.

Earlier, the pound had come under pressure ahead of a parliamentary debate on Article 50 and Britain's exit from the EU, amid reports prime minister Theresa May could start the process as early as 9 March.
Figures showing UK consumers slowing the pace of borrowing had also weighed on sterling.
After an initial 41 point or 0.6% morning rally, the FTSE 100 sank back in the afternoon to close 19 points or 0.3% down at 7,099 after a resumption of selling pressure on Wall Street.

US technology and industrial stocks extended yesterday's losses as disappointing earnings and weak consumer confidence data added to concerns about Trump's leadership following his clampdown on immigration. At 5.15pm London time the S&P 500 was down 0.5% at 2,268 and the Dow Jones industrial 0.7% lower at 19,827.

In London miners held on to their gains with Fresnillo (FRES+Add to favourites) and Antofagasta (ANTO+Add to favourites) closing over 2.5% higher at £14.55 and 837p respectively.

Financials lost ground with Legal & General (LGEN+Add to favourites) down 2% to 235p