Euro is too low for Germany´s economy, Schaeuble says

Germany´s finance minister cautioned the European Central Bank that its expansionary policies would drive an excessive depreciation of the single currency for Germany´s needs, bolstering its trade surplus, before it embarked on its looser monetary policy.

Speaking to Germany´s Tagesspiegel, on Sunday, Wolfgang Schaeuble said that: "the euro exchange rate is, strictly speaking, too low for the German economy's competitive position.

"When ECB chief Mario Draghi embarked on the expansive monetary policy, I told him he would drive up Germany's export surplus."

"I promised then not to publicly criticise this (policy) course. But then I don't want to be criticised for the consequences of this policy," Schaeuble reportedly said.

"The euro exchange rate is, strictly speaking, too low for the German economy's competitive position."

"The ECB must make policy that works for Europe as a whole," he added.

Michael Hewson, chief market analyst at CMC Markets UK, said: "The timing of the comments is no coincidence given last week’s broadside by Peter Navarro, Donald Trump’s chief trade advisor, and are clearly an attempt to try and deflect some of that criticism.

"At the beginning of this year the US dollar index hit its highest levels in 14 years, and since then it has slowly started to slip back, despite the fact that US economic data has by and large been positive, while Fed policymakers have suggested that we could well see multiple rate rises this year."