..a statement in denial. We all know that currencies move in relative terms. And in relative terms, US dollar has been falling against all major currencies. He could be right if the dollar just fell against one or two currencies.
..DXY closed at 99.10
..DXY is particularly weighted against the Euro. And the Euro which sank after the US-China trade truce, has rebounded since and closed at $1.1365 presumably with more selling from EU after Trump threatened 50% tariffs on EU.
..so dollar weakness helped US Gold rise to $3,357 above the all important $3,340 mark.
..not coincidentally, BTC fell while momentum shifted to Gold, in direct contrast to a week ago.
..well, it was only good while it lasted. US 10yr dipped to 4.46pc after the 50% EU tariff was announced but by the close, it was back up to 4.52pc not far from where it was before the announcement. Ditto US 30yr dipped to 4.99pc but by the close, it was back up to 5.03pc.
..EU is not China. If Trump expects EU to wind back all their regulatory hurdles, he doesn't understand EU. Nor bothers to. I'd say it would be tougher to negotiate with EU than with China.
..And if Trump is serious about proceeding with 50% tariff, it would be even higher than on China. EU won't take that well, and we can expect them to invoke the 'digital tax' nuclear on Meta/Google and possibly hit Tesla too.
..markets have been far too complacency thinking that the trade war is over. It is just beginning.
