The currency's decline renews fears that America's position in markets is waning. ...

President Donald Trump’s relaxed tone about the dollar selloff is fueling speculation the US currency is at the start of a longer-term decline. The dollar suffered its deepest one-day drop since last year’s tariff rollout after Trump said on Tuesday he didn’t think the currency had weakened excessively. Bloomberg’s dollar gauge slid as much as 1.2% as the comments sapped the appeal of the greenback and US Treasuries — boosting what has become known as the debasement trade. Most Read from Bloomberg For ...

Core Viewpoint - The dollar has fallen and is hovering near its lowest level since 2022, influenced by various economic concerns and comments from President Trump [1] Group 1: Dollar Performance - The dollar reached a low late Tuesday, marking its weakest point in nearly four years [1] - Concerns over government shutdown fears and a weak consumer confidence survey contributed to the dollar's decline [1] Group 2: Contributing Factors - Analysts from Deutsche Bank highlighted several factors pushing the dollar lower, including questions regarding the Federal Reserve's independence, uncertainty in tariff policy, and the fiscal trajectory [1]

President Donald Trump dismissed concerns regarding the value of the U.S. Dollar, as it falls to multi-year lows, while reviving long-standing complaints on the foreign exchange practices of China and Japan.The Dollar Is ‘Doing Great’Speaking with reporters in Iowa on Tuesday, Trump rejected the premise that the dollar had declined “too much,” while adding that the Greenback was “doing great,” even as the U.S. Dollar Index (DXY) dropped to a four-year low of 95.66 against a basket of other currencies.The cu ...

Do I like exchange-traded funds (ETFs)? Based on how much I write about them, I’d say that’s a clear yes. But are they perfect as market-trackers? No way. And with the U.S. dollar showing signs of potential upside down markets, while ETFs might be a good vehicle to play it, that’s not where I’m going to chart the course. Case in point: Here’s the Invesco DB US Dollar Index Bullish Fund (UUP). It has been a reliable tracking device for the U.S. Dollar Index ($DXY), a trade-weighted basket of currencies, s ...

Core Insights - The simultaneous rise of gold and stocks is unusual and indicates a potential clash between fear and confidence in the market [1][7] - Gold has increased by 44% this year, while the S&P 500 Index has risen by 14%, with both asset classes reaching new highs on the same day multiple times in 2025 and 2024 [2][3] Economic Context - Gold is typically viewed as a safe haven during economic uncertainty, which has been rare in recent decades, with only four all-time highs in gold over the last 54 years [3] - The U.S. Dollar Index has decreased by 10% this year, marking its worst performance since a 15% drop in 2003, which supports gold prices and makes U.S. equities more attractive to foreign investors [4][5] Market Dynamics - The decline of the dollar is seen as the primary driver for the concurrent rise in gold and equities, as expectations of U.S. economic outperformance have diminished [5][6] - Inflation has been decreasing since 2022, benefiting corporate profits and stock prices, while the weaker dollar has increased the appeal of gold [6] Historical Parallels - The current market dynamics draw parallels to the early 1970s, where falling inflation supported stock growth, but rising inflation later led to significant market declines [6][7] - The relationship between gold and stocks may not be sustainable, as historical trends suggest one asset will eventually diverge from the other based on economic conditions [7]

Tariffs and Trade - Uncertainty surrounding tariffs is hindering mergers and acquisitions [1] - The impact of tariffs on the S&P 500 earnings is estimated to be around 17% [6] - The market is waiting to see the actual impact of tariffs on earnings this earning season [3] - A tariff level around 20% is considered a threshold where adjustment time increases [3] Macroeconomic Factors - The underlying economy is showing signs of being "okay to good" based on US GDP growth forecasts [4] - A sharp decline in the dollar could become a tailwind for future quarters [5] Analyst Estimates and Market Expectations - Analyst estimate dispersion is wide, potentially leading to more conservative estimates [7] - Wider analyst dispersion tends to lead to bigger beats for the S&P 500 as a whole [7]