TD Research discusses the scope of an FX intervention by the US administration to weaken the USD.
"Currency intervention is the new talking point in markets. The president has tried to jawbone the USD lower since day one and yet the combination of late-cycle stimulus and a global trade wars blunted his effort," TD notes.
"Now, with those economic diminishing, the mere threat of intervention is enough to knee-cap the USD. In turn, intervention seems unlikely, especially if natural forces already want to pull the USD lower," TD adds.