US Commerce Secretary Lutnick says the USD was manipulated higher over many years; it's more natural for the USD to be at its current level

The comments from US Commerce Secretary Lutnick regarding the manipulation of the USD suggest a significant shift in perception around currency valuation.

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US Commerce Secretary Lutnick says the USD was manipulated higher over many years; it's more natural for the USD to be at its current level

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  • Thinks Q4 GDP growth will be in excess of 5%.
  • Could reasonably see growth in excess of 6% in Q1.
  • Says US will see large manufacturing job growth in 2026.
Context

If the USD is deemed to be more naturally aligned at current levels, this could imply reduced risk for traders regarding aggressive USD strengthening or potential interventions. Additionally, his optimistic GDP growth forecasts for Q4 and Q1 may bolster the USD if traders perceive stronger economic fundamentals supporting its valuation.

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