Trump's deal questioned, the dollar is set for its worst weekly performance since August

ChainCatcher news, according to Jinshi reports, the dollar is heading towards its largest weekly decline in three months, as silver investors begin to question the so-called "Trump trade" that has driven the dollar's strength since the U.S. elections. The dollar index DXY fell nearly 0.2% during the Asian session on Friday, with the weekly decline expanding to 1.1%.

This week, the dollar weakened against all other G10 currencies, with the dollar falling the most against the yen. Singapore's StoneX Financial forex trader Mingze Wu stated, "The market is still struggling to find the direction of the dollar." "We expect the dollar to move sideways until Trump is inaugurated in January next year, and once he announces his policies, the dollar's direction will become clearer."

Posts by Trump on social media have begun to disrupt financial markets, as concerns grow that his policies may ultimately harm the world's largest economy, causing the dollar's eight-week rally to stall. Citigroup's index tracking forex fund dollar positions rose this week to its highest level since August 2023, indicating that long positions may be overly stretched.