Dollar Up Following Warsh's Nomination

Warsh is seen as being generally more hawkish regarding fiscal policy than some of other candidates were, so the expectation that US interest rates will stay higher for longer is supporting the Greenback this morning. That being said, Traders are continuing to price in the expectation that the Fed will cut in June.

Traders have been aggressively piling into metals over the last several days (and weeks) as risk concerns made the Dollar seemingly less attractive as a store of value, but metals have been forced to give up significant gains in the last 24 hours as the Dollar as rallied, in part as a result of Warsh’s nomination, and Gold is now trading under $5,100/oz and Silver under $100/oz – this represents a 10% slide from this week’s earlier peaks.

What to Watch This Week…

• Factory Orders & Durable Goods Orders Friday 10AM
• Monex USA Online is always open

The complete Economic Calendar can be found here.

CAD ⇓

The Canadian Dollar is down against the Buck this morning following a data release indicating that the Canadian economy likely contracted about half a percent in the fourth quarter of 2025. The Bank of Canada maintains that they expect flat growth once the fourth quarter’s full data is released at the end of next month due to any kind of economic expansion being wildly uneven as the Canadian economy adapts to ever-changing US trade policy.

JPY ⇓

The Japanese Yen is the G10’s biggest loser against the Greenback today,

for its second loss in three days. Despite the Dollar’s rally from Bessent’s confirmation that the US did not intervene in Japanese markets and Warsh’s nomination, Japan has managed to claw the Yen back from the brink of destruction over the last week and were able to do so with little-to-no spend from the Ministry of Finance.  For comparison, to artificially generate a similar exchange rate move in the Spring of 2024, the MoF was forced to spend $65 Billion.