Trump, Dollar and Safe Havens
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‘Get Ready’—U.S. Dollar ‘Collapse’ Warning Issued As Markets Brace For Gold And Bitcoin Price Shocks
Gold and silver have both hit record highs as the U.S. dollar declined, with David Wilson, director of commodities strategy at BNP Paribas, telling Bloomberg that gold at $5,000 per ounce “looked like a big target” not that long ago, but is now within sight.
The dollar retreated to its lowest level in a week in early trading on Monday after threats from the White House towards the European Union over the future of Greenland triggered a broad selloff across U.
The dollar sank 0.31% against the euro to $1.16 and tumbled 0.32% against the yen to 157.58. Meanwhile, gold rose 1.95% to a fresh record of $4,684.30 per ounce. Silver jumped 5.66% to $93.53, also a new high. Due to the Martin Luther King Jr. Day holiday on Monday, U.S. stock and bond futures were inactive.
Over the past 30 and 60 days, the correlation of changes in the Dollar Index and two-year US yields is at the lower end of where it has been in the last eight months (~0.38-0.40).
Rolling back the dollar's near 50% rise over the past 15 years was a pillar of Donald Trump's economic agenda. Now that early success has fizzled, markets suspect last year's 7% drop may be it.
Dollar stores—particularly Dollar Tree—have long been a place where you can shop and know you won't experience sticker shock. With prices at only $1 per item, you knew you'd be getting a good deal, no matter what.
The dollar (DXY) has strengthened since the start of the year and shows only few signs of weakening. We take a look at the Dollar Index and EUR/USD to assess the current state of the market.
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Dollar edges higher against dong
The U.S. dollar strengthened slightly against the Vietnamese dong Monday morning as it slipped against major currencies.