US Dollar Dives, Treasury Prices Fall, Gold Spikes: Investors Flee US Assets
Following escalating tensions between President Trump and European leaders over Greenland, a “sell America” trade emerged, causing U.S. bond prices to fall and the dollar to decline. European officials are reportedly considering retaliatory economic measures, raising concerns that the U.S. is no longer a reliable trading partner, potentially leading to a dump of U.S. assets. The drop in the U.S. Dollar Index was the largest since April, and international markets continued to slide, reflecting investor fears of a volatile and unreliable United States. Some analysts suggest investors are hedging bets and diversifying away from U.S. assets as indexes are near all-time highs.
John Q. Hosedrinker