U.S. Dollar vs Precious metals
The U.S. dollar continued to recover from a five-month low on Tuesday. Comments from U.S. Secretary of the Treasury Steven Mnuchin, stating that a strong dollar is good in the long run, offset previous remarks from President Trump who last week said that the dollar is getting too strong and that it is hard to compete when other countries devalue their currency. Mnuchin also agreed that the dollar’s strength in the short run is hurting exports and the economy; based on such mixed signals, traders are finding it difficult to choose on which side to take a trade.
Mnuchin sent another signal on tax reforms on Monday, saying that expecting one before August is highly aggressive and not realistic. Investor and traders are likely to start questioning whether Trump will be able to deliver on tax reform and stimulus but so far most signs are negative, thus another negative factor affecting the USD.
Four precious metals started on Tuesday with having lost in some value. Geopolitical tensions over North Korea pressured the dollar against the majority of a world currency.
Stock Market Today
U.S. stocks on Tuesday opened lower S&P 500 2341.69 (-0.31%) and NASDAQ Index 5842.07 (-0.25%), Dow Jones Industrial Average 20,538.14 (-0.49%).
Wall Street opened lower today, as a spate of weak earnings compounded concerns over this weekend’s French election and U.S.-North Korea tensions, helping to keep a lid on stocks.
U.S. stocks rose after three straight sessions of losses as investors shifted their focus to earnings and the greenback steadied after Treasury Secretary Steven Mnuchin said dollar strength is good over long periods of time.
Stocks gained on Monday with a positive outlook on first-quarter earnings. The Housing Market Index was reported on Monday. The index decreased to 68 from 71 with home builders reporting less confidence in the housing market.
Generally speaking this week got off to a slow start was quieter on Monday as most of the world views as a continuation of the Easter Holiday.
This week will also feature a visit to Washington from the International Monetary Fund and the World Bank, as well as China’s first-quarter growth rate and U.K. retail sales.