A Seinfeld Kinda Day: Nothing Really Happened

Not much happened today in either the stock market or the bond market. Dull days are good for a change. The markets are no longer responding to every comment coming out of the White House. On Sunday, President Donald Trump called Fed Chair Jerome Powell "a total stiff." But he also said that he will not remove the Fed Chair. Today, Treasury Secretary Scott Bessent observed, "The United States is the premier destination for international capital." The dollar index (DXY) edged up slightly. On the other hand, the price of gold jumped sharply higher to $3386.60 this evening (chart).

The Fed released last week's daily readings for the "broad" trade-weighted dollar. It hasn't been as weak as DXY, which is a fixed-weight currency index with the euro having a weight of 57.6% (chart)!