Trading Insights 05/07/25

Mike Larson
May 07, 2025

Chart of the Day 📈 5/7/25: As Dollar Gets Dumped, Alternative Hunt Heats Up

Mike Larson | Editor-in-Chief

The dollar is getting dumped. In Europe. In Asia. In emerging and developed markets around the world.

Meanwhile, the hunt for alternatives is heating up. So…should you jump on the trend?

Let’s start with the MoneyShow Chart of the Day – a year-to-date chart showing the SPDR Gold Shares (GLD), the Invesco DB US Dollar Index Bullish Fund (UUP), and the iShares Bitcoin Trust ETF (IBIT). Also shown: ETFs that track the Japanese yen, the Australian dollar, and the performance of a basket of emerging market currencies against the US dollar. They include the Mexican peso, South Korean won, and Turkish lira.

GLD, FXY, UUP, FXA, CEW, IBIT
(YTD % Change)

Data by YCharts

A couple of things stand out…

First, gold has been the ultimate “dollar alternative” – with gains of more than 29% in just over four months! I’ve been pounding the table on precious metals for a LONG time, and I hope you’re enjoying the move.

Second, Bitcoin initially sold off as a Nasdaq proxy / “Risk On” asset in March and April. But it’s showing signs of life again. If it can break that tech-stock tie, it could be the next big dollar alternative play.

Third, the UUP is down 7% already this year – a big move in the foreign exchange / currency ETF world. On the flip side, everything from the WisdomTree Emerging Market Currency Strategy Fund (CEW) to the Invesco CurrencyShares Japanese Yen Trust (FXY) is rising. That shows the breadth and depth of this dumping-dollar move.

In sum: Don’t be too quick to jump off these trends if you’re trading them. They look durable to me.

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FEATURED PICKS FROM MONEYSHOW EXPERTS

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