USD-
The Dollar is trading close to a 2022 low across the board and is presently trading at its cheapest against the Pound since July of 2025. This softening started last week when Trump secured his Greenland deal and backed away from his threatened tariffs, for the 10th time.
Now however, the Dollar may have a more hidden threat, that being a general debasement, achieved by FX fixing by the Treasury. On Friday, the Federal Reserve Bank of New York put the feelers out to various banks around the US regarding their opinion of a currency pact with Japan to allow the very weak Yen to appreciate against USD.
Naturally, this has spooked USD traders to a great degree, with the Fed likely acting on behalf of the Treasury, it has reignited fears from the start of the 2025 of a "Mar-a-Lago Accord", similar to the Plaza Accord back in 1985. That deal saw USD debase itself against almost every major economy in the world and decline in value by 43% by 1987.
But how has this come about? Well, Japanese authorities are concerned about the speed of the Yen's recent weakening, caused by both a newly expansionary fiscal policy and a BoJ unwilling to hike rates.
And Trump has long wanted to see a weaker USD, to stimulate exports, giving both sides the motivation to seek an arrangement. Whether this is just information gathering by the Fed of NY, or the start of a new currency regime, remains to be seen, but the market certainly seems to think its the start of something big.
Markets Today
*Please be aware the below rates represent the market rate at 8:00 AM, contact your Caxton dealer on check online for a live quote.
Major Economic Releases (All times in GMT)
13:30- US Durable Goods Orders (Nov)