TT Trump makes a shocking statement, USD may lose value for an extended period, Gold continues to break records
When asked if the President is worried about the USD losing value, Trump replied: "Not worried about the USD losing value, may let it fluctuate like a yo-yo."
This comment has exacerbated the decline of the USD, which is experiencing the strongest sell-off since last weekend. The DXY index has fallen to its lowest level in nearly 4 years.
Why has the USD dropped sharply recently?
- Last week, the New York Fed unexpectedly conducted a rate check operation with the USD/JPY pair, raising speculation that the Fed is considering coordinating with the Bank of Japan (BOJ) to sell USD and buy JPY. This is believed to be part of a comprehensive cooperation between the two countries, helping Japan strengthen its domestic currency and expand its defense budget.
- The Trump administration has repeatedly expressed a desire for a weaker USD to enhance the competitiveness of American goods and bring production back home. Today's comments from President Trump are understood by the market as a green light for that.
However, many analyses suggest that this decline of the USD may pause starting tomorrow because:
- There has been no confirmation of actual intervention from the Fed or BOJ. Both sides may just need to send signals as they have been doing recently for the market to automatically support the Yen.
- Tonight, the Fed will announce its interest rate decision, expected to remain unchanged. Chairman Powell may send positive signals about the US economy in the coming year during the press conference.
Meanwhile, money continues to flow into gold, pushing the precious metal to a new record high of $5,200/ounce.
$OWL $BTC
When asked if the President is worried about the USD losing value, Trump replied: "Not worried about the USD losing value, may let it fluctuate like a yo-yo."
This comment has exacerbated the decline of the USD, which is experiencing the strongest sell-off since last weekend. The DXY index has fallen to its lowest level in nearly 4 years.
Why has the USD dropped sharply recently?
- Last week, the New York Fed unexpectedly conducted a rate check operation with the USD/JPY pair, raising speculation that the Fed is considering coordinating with the Bank of Japan (BOJ) to sell USD and buy JPY. This is believed to be part of a comprehensive cooperation between the two countries, helping Japan strengthen its domestic currency and expand its defense budget.
- The Trump administration has repeatedly expressed a desire for a weaker USD to enhance the competitiveness of American goods and bring production back home. Today's comments from President Trump are understood by the market as a green light for that.
However, many analyses suggest that this decline of the USD may pause starting tomorrow because:
- There has been no confirmation of actual intervention from the Fed or BOJ. Both sides may just need to send signals as they have been doing recently for the market to automatically support the Yen.
- Tonight, the Fed will announce its interest rate decision, expected to remain unchanged. Chairman Powell may send positive signals about the US economy in the coming year during the press conference.
Meanwhile, money continues to flow into gold, pushing the precious metal to a new record high of $5,200/ounce.
$OWL $BTC
