The U.S. dollar sank to a four-year low after President Trump shrugged off concern over recent dollar weakness, “No, I think it’s great, the value of the dollar. Dollar’s doing great and I would want it to seek its own level.” Traders interpreted Trump’s comments as green light to sell the dollar as DXY declined 0.85% on the day (on pace for steepest weekly decline since last year’s Liberation Day).
Given the dollar’s near 10% decline in 2025, it is easy to understand why foreigners are souring on 4.247% 10-year Treasury yields. Given the size of Treasury markets, it is not surprising spot gold has touched $5,311 in early Wednesday trading.
Last year, ECB Vice-President Luis de Guindos Jurado identified $1.20 on the EUR/USD exchange rate as a maximum acceptable level with further strength representing an exchange rate the ECB could not “tolerate.” EUR/USD touched 1.2081 on Tuesday, having surged from 1.1576 in less than two weeks.
Reuters cites Vanda Research in observing silver sentiment among retail investors is entering Meme-stock territory. Individual investors net bought $171M of iShares Silver Trust (SLV) on Monday, nearly double the $93M one-day record set during the 2021 silver squeeze. In our chart of the week (below), daily trading volume of the $56B SLV is now many multiples of daily volumes for the $714B SPDR S&P 500 ETF (SPY).
The Sprott Physical Uranium Trust purchased 500klb yesterday, bringing Q1 purchases to 1.25Mlb (highest Q1 since ’23) and total holdings to 76Mlb. Spot uranium price hit $91.15/lb.
Senate Democratic leader Schumer raised concerns over a partial government shutdown at week’s end by balking at funding the Department of Homeland Security following this week’s Minnesota shooting.
Mid daily geopolitical and financial market headlines, let’s not forget today’s 2pm FOMC rate decision and 2:30 press conference. While no rate movement is expected and no update to the SEP dot plot is scheduled, markets will be hype focused on Chair Powell’s presser.