Market Talk – April 4, 2025
ASIA: The major Asian stock markets had a negative day today: • NIKKEI 225 decreased 955.35 points or -2.75% to 33,780.58 • Shanghai closed • Hang Seng closed • ASX [...]
The Dollar Decline
The Fed meeting this week has triggered a turn in the dollar as US rates dipped on the 10-year to their lowest since Trump took office. As a result, the greenback is the weakest among the majors for the week thus far as we should expect for a decline near-term. Although there has been an impressive rally in EUR/USD, that currency has significant overhead resistance. The euro has not gained nearly as much as its major counterparts such as the Swiss and the C$.
While everyone will focus on interest rates, at the end of the summer we will see a refocus back on the structural problems in the Euro. Trump will be jumping for joy with a lower dollar for that will help in trade issues. The lower interest rates will also help to reduce interest expenditures on the national debt. So once again, we are looking at the calm before the storm.
Latest Posts
Trump’s Tariffs are Winning
I have said on various podcasts that a 10% tariff is really a tariff. Beyond that, it is political to force free trade. Most countries are dropping tariffs on [...]
Tariffs are NOT Reciprocal
How did the Trump Administration come up with these tariff rates? Why would a nation like Madagascar, for example, with a small economy, be hit with a 47% tariff? Reciprocal [...]
Eric Adams Leaves the Democratic Party
New York City Mayor Eric Adams, the man who fought tooth and nail to maintain sanctuary city status for migrants, has abandoned the Democratic Party. The Democrats have become so [...]
