The Dollar traders are sitting still

Good Day... And a Tom Terrific Tuesday to you! Well, I did it again... I wrote about ½ of the letter and then it was gone! So, I have to remember what I wrote about! Outlook should have a file that contains all of the drafts, not just the ones that are real drafts... Alice in Chains greets me this morning with their song: Dow In A Hole... 

Well, the dollar saw a 1 index point gain yesterday, in the BBDX which closed the day at 1,227... Like I said yest the dollar traders are not of conviction to drive the dollar higher right now, they've done enough,,,I had written something really witty here, but now the thought has passed, so that's all you get regarding the dolar....

Gold /Silver saw much interference from the SPTs yesterday... Gold gained a whopping $2 and Silver lost 29-cents... Gold close at $4,172, and Silver closed at $60.45... I wrote yesterday about how Wall St. had turned bullish on Gold/Silver... Well, they need to buck up and show that they are bullish because yesterday's performance was lackluster at best.... I'm just saying...

Oil is trading in the same clothes as yesterday, with the price having a $92 handle... And the 10-year Treasury saw more Fed Hea buying, and its Yield drop to 5.19%... 

In the overnight market last night... Well, the dollar got sold by 1 index point in the BBDXY as it sits 1,226 this morning... The dollar has been going back and forth 1 index point, and this really points out the call I made that Traders have no conviction to take the dollar higher right now... This could all change, but for now, their sentiment Is that the dollar is fine right here... I object... I think the dollar should be near the cliff... But then that's just my take...

Gold/Silver are both up this morning, with Gold rising $13 and Silver rising 3-cents... Copper is really taking on the dollar recently and this morning its $6.75... 

The price of Oil remained in the $92 handle overnight... No news from the Gulf so Oil traders are sitting still.. And the 10-year Treasury remained in yesterday's clothes and sits 5.19% this morning...

Yesterday, I told you that POTUS had announced a deal with Russia for 300,000 gals of Diesel fuel. And we'll drop some sanctions on Russia... What? You didn't think they were doing this out of the kindness of their heart, did you?

U.S. Treasury Secretary Besset, had this to say about the deal: "This is good for Americans" Anything to get voters that on the fence to vote for the REP party candidate... He didn't mention that this isn't a good deal for Ukraine, Iran, and most importantly the U.S. national security... But then our recent trade deficits have done the heavy lifting here... I'm just saying... 

I told you that the Chinese renminbi had gone below the 6.70 figure, and that this was a Big Deal... Well, the Chinese are going to continue marking down the renminbi I can feel it.. 

I talked about the Petrol Currencies and how the Russian Ruble had moved back to the lead here... The Brazilian real Is really pushing the envelope on becoming the leader... But the Norwegian krone has that an once the euro gets going higher again, the krone will move out ahead of the other Petrol Currencies... 

Speaking of the euro... There are all kinds of writers out there dissing the euro and calling for it to fall to parity with the dollar, but I'm not one, for I see the dollar will return to its underlying weak trend, soon, and that will lift the euro and in turn the Norwegian krone... 

The U.S. Dat Cupboard doesn't have anything of importance for us today, but tomorrows STUPID CPI will dictate how the markets move... I may not pay much attention to the STUPID CPI, but the markets sure do, so I have to give it its due... 

To recap... yesterday was a sort of bad day, as the dollar gained 1 index point in the BBDXY, Gold gained $2 and Silver lost $29-cents... The price of Oil remained trading with a $92 handle and the 10-year saw Fed Head buying with the 10-year's yield dropping to 5.19%

For What It's Worth... Yesterday I told you about how so many Americans were behind in their payments...

Here's your snippet: "There’s a growing correlation between oil and gold. Higher oil leads to higher bond yields, destabilising the dollar’s value. The debasement trade is back on.

“This is little doubt that the dollar’s purchasing power and credibility will be severely undermined, and that gold will therefore run higher with a significantly higher oil price. This change in sentiment could be sudden and dramatic.”

Paper bulls of gold and silver may be down in the dumps, but there’s a quiet evolution in progress. And this is now evident in the relationship between gold and oil over the last three months:

After oil’s peak last April, the price started a bottoming process in July, as did gold. Both then rose, not entirely synchronised, but roughly together with gold achieving its high point at end-

August and oil three weeks later before both declined to recent lows in the last week

This action questions the macro view which argues that higher oil prices lead to higher inflation and therefore interest rates, raising the cost of holding gold. But on examination this argument doesn’t hold water.

Why is this?

It’s a matter of perception about where risk ultimately lies and it’s here that macroeconomic analysis clashes with evolving facts. It is becoming clear that there is a conflict between US government funding requirements and the reluctance of foreign actors to buy US debt. This is leading to continuing Asian demand for gold, ignoring declines in the dollar price. And it is also becoming clear that with diesel, kerosene, and ship bunker shortages along with other oil derivatives that businesses face significantly higher costs and supply disruptions, leading to a slump in economic activity. At the same time, prices of virtually everything are being driven higher not just for businesses finding them difficult to pass on, but for consumers as well."

Chuck again... you don't get this stuff on the evening news... I'm just saying...

Market Prices 10/13/2026: American Style: A$ .6975. kiwi .5614, C$ .7014, euro 1.1192, sterling 1.3245, Swiss $1.2013, European Style: rand 16.4739, krone 9.5332, SEK 9.9808, forint 325.13, zloty 3.0995, koruna 21.7690,   RUB 83.97, yen 158.13, sing 1.2798, HKD 7.8481, INR 95.28, China 6.6933, peso 18.27, BRL 4.9871, BBDXY 1,226, Dollar Index 102.26 , Oil $92.10, 10-year 5.19%, Silver $60.54, Platinum $1,705.00, Palladium $ 1,168.00,  Copper $6.75, and Gold... $4,1484.

That's it for today... A friendly neighborhood reminder that there will be No Pfennig tomorrow, but I'll be back in the saddle on Thursday.... I'm having problems with my digestive system again... For two weeks it was great but not so great now... The NLCS is heading to L.A. With the Brewers up 2-0 over the mighty Dodgers, while the Indians, I mean the team from Cleveland is up 1-0 ... I still call the Indians, and the football team in Washington, the Redskins... HEY! I'm an old man; I don't care about being politically correct! Three Dog Night take us to the finish line today with their song: Out In The Country... I hope you have a Tom Terrific day today and Please Be Good To Yourself!