- Chuck was all confused yesterday….
- The dollar is back as the fave currency of the tariffs…
Good Day… And a Wonderful Wednesday to you! Well right out of the starter’s blocks this morning, what was I thinking calling yesterday a Wonderful Wednesday? Getting ahead of myself I guess, but what a dolt! See? Even I make mistakes.. HAHAHAHAHA! I had a reader send me a note several years ago, and tell me not to use HAHAHAHAHA because it makes me look amateurish… So, as you can see, I didn’t listen to him! I listen to: my wife, my doctors, and myself…. And some other folks from time to time.. My mother used to tell me that I was just like a hard headed Dutchman! The band, Jet, greets me this morning with their song: Are You Gonna Be My Girl?
Well, yesterday morning I told you that the dollar was getting bought and the BBDXY was up 5 index points at that point it was 1,302… But it saw some weakness during the day before finally gaining a bit at the end of the day to close at 1,301, thus up 4 index points on the day…
The dollar was up because the POTUS had renewed talk of large global tariffs…. And… Because the dollar bugs are convinced that the Fed Heads will keep rates unchanged at their FOMC meeting today…. But like I said yesterday, you never know what kind of shenanigans the Fed Heads will pull on us…. Well, I didn’t actually say that exactly, but it’s close to what I said!
Gold was up $6 yesterday morning, buy as the day went on, it began to ratchet higher and higher until the close when it was up $24 at $2,764.00… Silver started the day down -44-cents, but finished the day at $30.45 up 19-cents… So, nice turnaround on the turnaround Tuesday Silver!
The price of Oil remained trading with a $73 handle again yesterday, and the 10-year Treasury’s yield saw some buying and therefore it dropped to 4.52%
In the overnight markets last night…. The dollar kept the pressure on, albeit soft pressure, and gained 1 index point in the BBDXY Index. I have an article in the FWIW section today that talks about the strong dollar, so you won’t want to miss that! Gold starts the day down $4 and Silver starts the day up 17-cents! The Gold / Silver ratio has really spread lately, so this is a welcoming development for Silver holders… And Gold can easily turn that red ink around today, so get out and buy some Gold to help it turnaround….
The price of Oil remained trading with a $73 handle overnight, and the 10-year didn’t move for once overnight… And starts the day today at 4.52%… Maybe the Fed Heads have gotten their pound of flesh from the 10-year’s yield, and will sit back now and see what happens..
Well, the new POTUS announced yesterday in an Exec. Order: The order bans federal agencies from issuing CBDCs… (Central Bank Digital Currencies) which means the Fed/Cabal/Cartel cannot change our dollar denominated bank accounts overnight into digits….
Now this should have been a shot across the cryptocurrency’s bows, but it took a back seat from the announcement made this past weekend about a new Chinese AI called DeepSeek…. That will revolutionize the AI and make the leader in Chips that are used to make AI have to revamp their business…
The world is changing daily, folks… But do you know what’s steady Eddie? Got Gold?
When I had lunch with Frank Trotter the CEO of Battle Bank, he told me of a program that Battle Bank will use, when it opens, and that lending, using Gold as collateral…. How about that? Does your bank offer that? Battle Bank’s opening is getting closer I can feel it in my bones…. So, have you gone to their website and signed their waitlist? If you haven’t, go there now! www.battlebank.com
OK, the FOMC meets today, along with the Bank of Canada… Man was i screwed up yesterday morning, I even titled the Pfennig “It’s a FOMC Day!” Only a real dolt could do something that bad and still have his job! What, Wait? I have no job! Except to wake up and write this letter, and anytime someone wants to fire me, just let me know!
OK one of the folks running for Canadian PM, Christine Freeland, has called for a coordinated retaliatory effort from a group of countries that will have tariffs put on them by Pres. Trump… These countries include: Mexico, Denmark, Panama, EU should respond jointly to be a force to be reckoned with… I then saw the major items that Canada imports from the U.S. they include: Oranges from Florida, dairy from Wisconsin, and dish washers from Michigan are the some of the items Canada can use to retaliate the U.S. tariffs…. When Trump was just a candidate for President, he first mentioned his tariffs position, and it was then that explained how this would turn into a global retaliation and a global depression… I still stand by that thought…
The U.S. Data Cupboard yesterday saw Durable Goods for Jan, plunge to a -2.2%… I thought that this data would be negative but not that bad! For all of you at home wondering what makes up Durable Goods, these are items that will still be in operation in 3 years…
Today’s Data Cupboard has the FOMC meeting, and nothing else matters….
To recap…. The dollar rebounded yesterday and you can blame it on the POTUS talking about large universal tariffs… The dollar has become the favorite currency to bask in the tariffs, and Chuck thinks that this thought couldn’t be more wrong! But that’s what Chuck as for you in the FWIW section below… The FOMC meets today… Will they change their minds and cut rates? I doubt it, but hey! Stranger things have happened!
For What It’s Worth… I’ve talked about how the markets are thinking the larger and wider distribution tariffs are just what the doctor ordered to keep the dollar strong,… I’ve also talked about how off the track those thoughts are, but I guess we’ll have to wait-n-see… So, this article talks about how the dollar is back in the driver’s seat with the talk of higher tariffs…. And it can be found here: USD: Dollar Climbs as Trump, Bessent Reignite Universal Tariff Threat – Bloomberg
Or, here’s your snippet: “The US dollar is once again showing off how it’s become a popular way to trade tariff threats, rallying after President Donald Trump said he favors imposing “much bigger” levies than had been suggested by one of his top officials.
The Bloomberg Dollar Spot Index rose as much as 0.5%, the biggest intraday advance in a week, as Trump vowed tariffs bigger than those reportedly under consideration by incoming Treasury Secretary Scott Bessent. The recent wobble in the stock market tied to Chinese AI startup DeepSeek’s cheaper model is also driving demand for the world’s reserve currency.
“The dollar stays strong until proven otherwise,” said Kathy Jones, chief fixed-income strategist at Charles Schwab & Co. “I do think it has room to come down and probably will at some point, but the tariff threat out there will stay as a bargaining chip, if not an actual thing.”
Trump says he’s considering potential tariffs on semiconductors, pharmaceuticals and steel.
Trump’s remarks and appetite for safety sparked a bid for the US currency that rippled through Asian and European markets and continued into the close of trading in New York. The Bloomberg dollar gauge ended the session 0.3% higher as of 4 p.m. New York time.
Investors have piled into bullish dollar positions on bets that Trump’s policies would fuel price pressures and keep US interest rates elevated. If tariffs also reduced imports into the US, it would reduce the flow of dollars oversees, which would also likely bolster the currency.”
Chuck again… So there you have it, and you don’t have to believe that I was making that all up!
Market Prices 1/29/2025: American Style: A$ .6222, kiwi .5644, C$ .6926, euro 1.0402, Sterling 1.2431, Swiss 1.1021, European Style: rand 18.6467, krone 11.3234, SEK 11.0132, forint 392.89, zloty 4.0632, koruna 24.1565, RUB 96.44, yen 156.40, sing 1.3615, HKD 7.7909, INR 86.58, China 7.2446, peso 20.51, BRL 5.8451, BBDXY 1,302.21, Dollar Index 108.12, Oil $73.46, 10-year 4.52%, Silver $30.52, Platinum $952.00, Palladium $963.00, Copper $4.25, and Gold…. $2,760.50
That’s it for today… Geez I still can’t believe I did that yesterday! I know I’m getting older, and with all the drugs I take and have taken through this journey through cancer, I could be losing it… Brain power… Sometimes I sing to myself:” I could while away the hours, Conferrin’ with the flowers, Consulting with the rain…. And my head I’d be a Scarchin’, while my thoughts are busy hatchin’ , If I only had a brain! Our SLU Billikens played last night in St. Louis, and the Billikens beat the VCU Rams!…. I used to do the lullaby Guild skit from The Wizard of OZ… That is before , oh you know when… I just know that it brought smiles to the faces of the people that saw me do it…. John Stewart takes us to the finish line today with his appropriately titled song today: Gold…. Well, I do hope you have a real Wonderful Wednesday today, and please Be Good To Yourself!
Chuck Butler