markdown
Good day to you! A marvelous Monday indeed. You know, the Cardinals pulled off a splendid feat, taking 2 out of 3 from the esteemed Dodgers. This team has a knack for matching the competition’s level, something that’s been both a boon and a bane. The weekend saw its fair share of rain, confining me indoors. Nonetheless, I grasped the moments of sunshine. This morning, Golden Earing’s “Radar Love” is the tune of choice.
The dollar experienced a modest rally on Friday, as the BBDXY added 4 index points. The euro flirted with the 1.14 level, only to settle at 1.1397. Wall Street’s mood has shifted once again, with talk of a delayed rate cut buzzing about. More on that shortly…
Gold had a less than sparkling end to the week, declining on Thursday and Friday. The yellow metal lost $21 on Thursday and another $45 the next day. Silver, which was soaring on Thursday, also took a hit from the sellers, closing the week at $36.04.
Several factors contributed to gold’s downturn, notably the PMI Services data on Wednesday and the employments figures on Friday. Both need to be addressed by the Fed with some urgency.
The PMI Services report highlighted surging inflation in May, influenced by tariffs and supplier costs. S&P’s U.S. Services PMI report noted: tariffs, suppliers raising prices, and wage pressures increased operating costs, causing a spike in customer prices.
Expect inflation to linger above 2%, putting a hold on the July rate cut — a driver of gold’s rally earlier in the week.
As for employment, the figures were a bit suspect. The Bureau of Labour Statistics (BLS) reported an additional 199,000 jobs, totalling 592,000 over two months. Quite a feat, considering it’s largely fabricated! Markets often gobble up these reports without a second thought, only to act surprised at later revisions.
On Friday, U.S. Treasury bonds saw substantial selling. The 10-year yield jumped to 4.50%, a significant movement not frequently seen. Back in my bond trading days, such shifts were rare.
Overnight, the dollar rally petered out, with the BBDXY retreating by 3 points today. The euro has climbed back above 1.14, showing resilience. The “Euro Wannabes” — Hungary, Poland, and the Czech Republic’s currencies — tend to follow the euro closely. They’re looking poised for a rally, which could spell trouble for the dollar.
This morning, gold is up by $14 while silver has risen 28 cents. Kitco.com suggested this weekend that, despite failing to hold $3,400, gold’s upward momentum isn’t over. As for silver, forecasts have it hitting $40 by year-end and $50 next year.
Oil is trading at $64, while the 10-year Treasury yield stands at 4.51%, ready to inch higher. Quite intriguing, these shifts in the market.
I stumbled upon a concerning bit of information over the weekend. Apparently, 63 U.S. banks are on the brink, with losses from low-yielding treasuries threatening their stability. These banks collectively have $517 billion in losses. Remember, the long period of ultralow rates was bound to have repercussions.
In a lighter vein, the Hong Kong dollar, affectionately “the honker,” seemed to break its usual peg to the dollar. However, upon closer inspection, it remains at the lower end of its range. I once believed China would let it float — wishful thinking, as it turns out.
The European Central Bank (ECB) should heed inflation warnings and pause rate cuts. Alas, not all members are listening. Let’s hope the solo voice urging caution gains traction.
On a societal note, many Americans are living a hand-to-mouth existence, as pointed out by Reddit discussions on Why Americans Live Paycheck to Paycheck. It goes beyond inadequate wages. The soaring cost of living coupled with emergencies like car repairs and medical bills erode any savings.
Here are today’s market prices (6/9/2025): American: A$ .6524, kiwi .6054, C$ .7313, euro 1.1418, sterling 1.3658, Swiss $1.2183; European: rand 17.7195, krone 10.0689, SEK 9.610, forint 351.98, zloty 3.7088, koruna 21.7913, RUB 79.13, yen 144.20, sing 1.2858, HKD 7.8481, INR 85.63, China 7.1813, peso 19.65, BRL 5.5600; Indexes: BBDXY 1,208, Dollar Index 98.95; Commodities: Oil $64.74, 10-year 4.51%, Silver $36.32, Platinum $1,209.00, Palladium $1,095.00, Copper $4.89, Gold $3,318.
That’s all for today. Quite a packed one indeed! There will be no update tomorrow, but I shall return on Wednesday. This week, I’ll have the house to myself — no one to bring me coffee, alas! Meanwhile, my daughter Dawn will be teaching her swimming courses, a delightful sight. The Temptations bid us farewell with “I Wish It Would Rain.” Wishing you a splendid Monday — do take good care of yourselves!
