US not seeking to weaken dollar as part of trade deals: Source | Metals Mine

  • US not seeking to weaken dollar as part of trade deals: Source

Added at 11:43am

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dchristi
May 14, 2025 5:38pm
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Quoting tradess1985
{quote} You do need to keep up and understand that investors are buying. {image} {image}
You strike me as someone who presents only one side of the story, just to "win" a debate in a forum.

I readily concede your point that the S&P and Nasdaq ended up today -- the S&P only 0.1% and the Nasdaq a little better at 0.7%. Meanwhile the DJIA ended down 0.22% and the Russel 2000 down .88%. Nevertheless, it is obvious that the stock market, in general, has come off it's recent lows and is doing well. I think that's a more balanced way of looking at the market, rather than just posting charts of the two markets that actually ended up today. I won't argue with the facts, however.

And neither should you. You failed to answer my point that, while the stock indices were mixed today, there was another large selloff in US treasuries -- so much so that yields are higher than they were when Trump "blinked" and deferred tariff implementations for 90 days. Since "Liberation Day", the US 10Y has jumped from around 4.00% to almost 4.54% today. That is huge, and problematic for the US government, which will now have to pay about 13.5% more in interest on the national debt.

When treasury yields go up, it means prices are going down, and prices go down when investors sell. My interpretation of this is pretty straightforward: Investors are selling US treasuries. I don't know if the treasury bond selloff will continue -- or if the S&P and Nasdaq will continue going up. But judging from the numbers, and the international participation rates in recent Treasury auctions, it certainly appears to me as if foreign investors, especially, are less eager to buy US debt. And if that continues it will undoubtedly have a negative effect on the value of the dollar.

If you have a more balanced response to the above than your previous post, I'd be interested to see it.
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Vancarbon
May 14, 2025 1:22pm — Edited
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Well , let’s just state the obvious :

They’re not exactly going to announce it in a policy document .

Oh wait ! They did just that .

Executive Summary
The desire to reform the global trading system and put American industry on fairer ground vis-à-vis the rest of the world has been a consistent theme for President Trump for decades. We may be on the cusp of generational change in the internationals trade and financial systems.
The root of the economic imbalances lies in persistent dollar overvaluation that prevents the balancing of international trade, and this overvaluation is driven by inelastic demand for reserve assets. As global GDP grows, it becomes increasingly burdensome for the United States to finance the provision of reserve assets and the defense umbrella, as the manufacturing and tradeable sectors bear the brunt of the costs.
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dchristi
May 14, 2025 11:48am
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Doesn't matter what the US is "seeking". Investors are ditching US assets because the country is being run by an incompetent administration.
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dchristi
May 14, 2025 1:03pm
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Quoting Trader#BE05
{quote} No they are not. Investors are back in US stock market, and market is going up. Keep up with trading.
You might want to try keeping up with the market for US treasuries, which has sold off again today. Investors aren't buying what the US government is selling.
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dchristi
May 14, 2025 9:07pm
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Quoting Schweet
{quote}President Trump has really hurt you pencil necks with all his success. To feel a little better you should go polish your participation medals.
Based on the thoughtful and valuable contribution you have made to the conversation here, I can tell you are a highly intelligent person. Maybe you could enlighten us "pencil necks" with a list of Trump's successes.

Let's see...ending the war in Ukraine on day 1? Uhm...no.
Stopping the bloodshed in Gaza...no, not that either.
Bringing prices down...not exactly.
Winning the trading wars he started? Well, not yet anyway.
Oh, and making Canada the 51st state, taking back the Panama Canal, and gaining control of Greenland? I guess those are still on the "to do" list.

I know! How about enriching himself and his family by setting up his own crypto coin and having foreign governments buy some? Now we're talking! Oh yeah, and freeing all of those nice tourists who attacked the U.S. Capitol! I sure am glad he's making the U.S. a safer country! And let's not forget how he's brought those bad law firms, "woke" universities and "fake news" establishments to heel by extorting them for money or free legal services. Yup, we can definitely put those in the "win" column!

But I'm sure you have your own list, and I'm just dying to see what you come up with.
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AaronWard
May 14, 2025 3:15pm
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Quoting Vancarbon
Well , let’s just state the obvious : They’re not exactly going to announce it in a policy document . Oh wait ! They did just that . Executive Summary The desire to reform the global trading system and put American industry on fairer ground vis-à-vis the rest of the world has been a consistent theme for President Trump for decades. We may be on the cusp of generational change in the internationals trade and financial systems. The root of the economic imbalances lies in persistent dollar overvaluation that prevents the balancing of international...
. How and when are the key questions. The dollar has gone through massive devaluations before. In most cases it was through the deliberate policy of the admin at the time.

For now though, I think they have an obvious problem. If they want people to invest in the us at the same time they devalue the us dollar they are asking the investors act against their own interests. A 20% return on an investment with a 20% devaluation of the dollar works out as a net gain of zero. The investor would be better off parking their money in a bank in England with a return of 3%. Also a weaker dollar will drive up inflation as much or more than tariffs.
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Trader#8CF4
May 14, 2025 11:44am
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Mar-a-Lago Accords cancelled until further notice
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ffghost
May 14, 2025 1:11pm
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Quoting dchristi
{quote} You might want to try keeping up with the market for US treasuries, which has sold off again today. Investors aren't buying what the US government is selling.
The /zb certainly has me scratching my head during this rally too. Though, with gold also selling off significantly each day has painted and strange picture.
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Trader#BE05
May 14, 2025 12:34pm
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Quoting dchristi
Doesn't matter what the US is "seeking". Investors are ditching US assets because the country is being run by an incompetent administration.
No they are not. Investors are back in US stock market, and market is going up. Keep up with trading.
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Trader#BE05
May 14, 2025 12:34pm
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Quoting Trader#92BF
The Dollar will become irrelevant in the near future. Smart money moving out .. Trump will just declare bankruptcy on the countries MASSIVE debt, just like hes done 4 times in his business life..
Nope, that is not going to happen.
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Trader#7697
May 14, 2025 1:21pm
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Quoting Trader#92BF
The Dollar will become irrelevant in the near future. Smart money moving out .. Trump will just declare bankruptcy on the countries MASSIVE debt, just like hes done 4 times in his business life..
please enlighten us all with your insight
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Expo33
May 14, 2025 11:53am
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"According to a person familiar with the situation"

Journalism 101. Seems legit
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Mosese
May 14, 2025 11:43am
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All that I am seeing is that gold is bearish
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dchristi
May 14, 2025 2:55pm
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Quoting Trader#91EA
{quote} I'm sure you can provide a source to this claim.
I shouldn't have to tell someone who purports to be a trader where to go to get market information, but since you ask, take a look here: https://www.wsj.com/market-data/bonds
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Jr123
May 14, 2025 10:59pm
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Quoting tradess1985
{quote} Good point. I think as long as yields stay below 5%, market is good and bullish. Inflation came in lower which is good, for the dollar and market. Fed won't cut rate until July maybe. They do not have reason too, as interest rate is at 4.5%, stock market is bullish, inflation lower. The 4.5% should attract more investors, they get more for 4.5%. Looking at data numbers, USA is doing good economically. GDP good, inflation, interest rates, manufacturing, services, all good data so far. US market is bullish and has done it's correction. Look...
All the data is good still. I don't no when we'll start to see bad data, but I know its coming. When it does the fed will cut rates quickly, the market will rally but won't hold. As it falls the USD will climb.
But I could be wrong or delusional.
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TimmyBTrades
May 14, 2025 11:50am
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Well then reducing trade deficits will be a lot tougher
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Trader#71E6
May 14, 2025 11:45am
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bo it is manipulation
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Trader#B749
May 14, 2025 1:38pm
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Quoting Trader#91EA
{quote} I'm sure you can provide a source to this claim.
It comes from " TDS victims daily newspaper".
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Schweet
May 14, 2025 8:28pm
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Quoting dchristi
Doesn't matter what the US is "seeking". Investors are ditching US assets because the country is being run by an incompetent administration.
President Trump has really hurt you pencil necks with all his success. To feel a little better you should go polish your participation medals.
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Jr123
May 14, 2025 5:01pm
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S&P trades almost 4 billion shares today but price hardly moves up or down. Looks to me like sellers are happy to get what they can and take profit. They want out.
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Jr123
May 14, 2025 5:36pm
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Quoting tradess1985
{image}
Did you sell or are you still holding. I know your bullish.
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Jr123
May 14, 2025 10:41pm
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Quoting tradess1985
{quote} Holding buy positions since around 5300. You?
Bearish. Waiting for reversal. Looking to sell SPY calls at 400 for Dec 19 2025.
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MrjaiFx
May 14, 2025 11:42am
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sell now
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Structure123
May 14, 2025 11:45am
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For how Long will the Gold keeps on falling
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T9A
May 14, 2025 11:52am
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The VOLATILITY just pushed me out of that sucking sideway range and boom TP
RR 2 * 2
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bishopbean
May 14, 2025 11:53am
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knobheads x
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SadatAhmad
May 14, 2025 11:53am
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will it make DXY bullish????
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bishopbean
May 14, 2025 11:53am
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got stopped out in gj cos of ts
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Trader#91EA
May 14, 2025 1:35pm
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Quoting dchristi
Doesn't matter what the US is "seeking". Investors are ditching US assets because the country is being run by an incompetent administration.
I'm sure you can provide a source to this claim.
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Trader#A71B
May 14, 2025 11:45am
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check EURUSD
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Trader#F7D2
May 14, 2025 11:46am
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Eurusd
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Trader#1D13
May 14, 2025 11:48am
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i hate gj x
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Trader#8CF4
May 14, 2025 11:50am
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US is seeking return of military industrial production! duh
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Trader#1D13
May 14, 2025 11:51am
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us be doing anything apart from getting me a job
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Trader#92BF
May 14, 2025 11:57am
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The Dollar will become irrelevant in the near future. Smart money moving out ..
Trump will just declare bankruptcy on the countries MASSIVE debt, just like hes done 4 times in his business life..
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Trader#580A
May 14, 2025 12:02pm
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Biden's weak dollar
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Trader#B7E3
May 14, 2025 12:22pm
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i cant believe i fall for this pussyhole trick tho. have my $3.00 yuh pussy
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Trader#33EC
May 14, 2025 1:33pm
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oh! please... my SL hit hard
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