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Trump Cheers Falling Dollar

President Donald Trump is essentially signaling he is broadly okay with a weaker dollar, and the dollar’s main benchmarks sold off after remarks that he is not concerned about the recent decline and sees it as compatible with the dollar “doing great.”

On Tuesday, the Bloomberg Dollar Spot Index printed 1,174.72, down 13.238 points, or 1.11%, with an intraday high of 1,190.22 and low of 1,173.58.

The US Dollar Index (DXY) also weakened on the day, with DXY opening at 97.054 and closing at 95.712, down 1.345 points, or 1.39%.

You can read more on the matter here.

What’s going on?

• Trump Officials Quietly Tell Miners No More Price Floors (theDeepDive)

• Carney says he expects U.S. to 'respect Canadian sovereignty' after Alberta separatists meet with Trump team (CBC)

• Canada’s Cultural Legislation Enters US Trade Discussions Despite Pushback (theDeepDive)

• B.C. mining firm says 10 people abducted in Mexico (CTV)

• Tether Buys 27 Tons of Gold, Rivaling Central Banks in Q4 (theDeepDive)

• Donald Trump says Vladimir Putin has agreed to suspend attacks on Ukraine’s capital (FT)

• Europe Threatens to Block Shadow Fleet Tankers as GPS Jamming Escalates (theDeepDive)

• U.S. Companies Are Still Slashing Jobs to Reverse Pandemic Hiring Boom (WSJ)

What’s the latest?

• Trade Deficit: Statistics Canada reports Canada posted a $2.2B merchandise trade deficit in November, widening from $395M in October, as exports fell 2.8% to $63.9B. The drop was led by metal/mineral exports (−24.4%) and motor vehicles (−11.6%, lowest in 3 years), while imports were nearly flat ($66.1B, −0.1%). In volume terms, exports fell 0.9% as imports rose 0.9%, signaling weaker external demand.

• Real Estate: U.S. rents continued falling, with the national median at US$1,353 in January (−1.4% YoY) and 6.2% below the 2022 peak, as vacancy hit a record 7.3% and units took 41 days to lease, per Apartment List. Supply remains elevated while demand weakens from labor-market softness, driving sharp declines in Sun Belt cities (Austin −6.3%) even as some Northeast and Midwest markets still post gains.

• Market: Software stocks sold off sharply, with the IGV software ETF dropping ~5% Thursday and now down 21% from its recent high, entering bear-market territory and on pace for its worst month since 2008. ServiceNow fell over 12% despite beating earnings, while Microsoft slid ~10% after cloud slowdown concerns and SAP dropped up to 14% on weaker backlog growth. Investors are repricing the sector amid fears that rapid AI advances could erode long-term demand and revenue for traditional software firms.

• Tech: Apple acquired Israeli AI startup Q.ai; terms were not disclosed. Q.ai, led by Aviad Maizels (who sold PrimeSense to Apple in 2013), was reportedly developing audio/communication AI and was backed by GV, Kleiner Perkins and Spark Capital. The move fits Apple’s pattern of buying small AI tech firms as it expands AI features in products like AirPods and partners with Google’s Gemini, amid pressure to accelerate its AI roadmap.

• Trade War: Bank of Canada Governor Tiff Macklem told Reuters he and his Governing Council see an “unusual potential for a new shock” to the Canadian economy because geopolitical risks are elevated and U.S. trade policy has become more unpredictable. Macklem pointed to factors such as threats against Greenland, tariff threats on Canada, and attacks on the independence of the U.S. Federal Reserve (Fed) as contributors to heightened uncertainty around the outlook and the Bank’s forecasts. He said these risks make it more difficult to predict the timing or direction of future rate movesand leave the economic projection more vulnerable than usual.

We’ve Hit a New Evolution in Metals Prices

The stock market and stuff

• Tesla Winds Down Model S And X, Gives Way For Optimus (theDeepDive)

• Trump Regulators Say They Are Ready to Lay Out Crypto Rules to Foster Growth (WSJ)

• BMO Bull Case Sees $8K Gold as Investors Seek Safety (theDeepDive)

• Microsoft sheds $430bn in market value as AI spending spooks investors (FT)

• Citi Raises Silver Forecast to $150 as Metal Surges Past $110 (theDeepDive)

In the juniors

• Total Metals Launches 5,500 Metre Drill Program At ElectroLode Property (theDeepDive)

• West Red Lake Gold Confirms High-Grade Continuity at Rowan with First Round of Infill Drilling Results (JMN)

• McEwen Set To Acquire Golden Lake Exploration For $0.12 Per Share (theDeepDive)

FULL DISCLOSURE: ESGold Corp. is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of ESGold Corp. The author has been compensated to cover ESGold Corp. on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.