Denver, CO – May 26th, 2025 – In a dramatic shift across global financial markets, LTUFP Trading Desk has released a high-alert report warning of unprecedented volatility following speculation around a new U.S.-led economic strategy dubbed the “New Dollar Accord.” This rumored policy framework, modeled after the 1985 Plaza Accord, signals a strategic devaluation of the U.S. dollar – a move that has sent shockwaves through currency and commodity markets.
The U.S. Dollar Index (DXY) has broken below the crucial 100 level for the first time in over a year, falling to approximately 99.5 – a 12% drop from its 2022 highs. As the dollar falters, gold prices have skyrocketed to historic levels, with spot gold (XAU/USD) hitting $3,500 per ounce in April before stabilizing around $3,290.
FX Fallout: Dollar Dive Triggers Euro & Yen Surge
According to analysts, the so-called New Dollar Accord draws inspiration from the historic 1985 Plaza Accord, suggesting coordinated international efforts to weaken the U.S. dollar in favor of export-driven recovery and inflation targeting. As a result, the U.S. Dollar Index (DXY) plunged below the critical 100 mark for the first time in over a year, now hovering near 99.5 – down 12% from its 2022 peak.
“This is a once-in-a-generation macro shift,” said Mauro Quintero, financial analyst and spokesperson for LTUFP Trading Desk. “Markets are reacting as though the accord is real, and the message is clear: the era of a strong dollar is on pause.”
Gold Breaks Records as Dollar Falters
As the dollar weakens, investors are fleeing to hard assets, most notably gold. The price of spot gold (XAU/USD) surged to an all-time high above $3,500 per ounce in April before consolidating near $3,290. Up 26% year-to-date, gold remains buoyed by inflation fears, debt restructuring rumors, and speculative talk of revaluing gold reserves.
Technical indicators show strong support at $3,200 and $3,000, while a confirmed breakout above $3,500 could launch a rally toward $3,800, analysts predict.
Currency Moves Signal Policy Coordination
Currency markets are also undergoing a significant realignment:
- EUR/USD has blasted through $1.1340 resistance, now targeting $1.15–$1.20, bolstered by the European Central Bank’s relatively hawkish stance.
- USD/JPY tumbled to 143.6, with Japan appearing to tacitly support the dollar’s decline as part of a broader alignment with U.S. policy.
Gold Breakout on Radar: Shining as Dollar Debases
Tactical Plays for Traders
In response to this unfolding scenario, LTUFP outlines a tactical trading playbook:
- Short the dollar on any bounce toward the 100–102 range.
- Long gold on breakouts above $3,500 or dips toward $3,200–$3,000.
- Buy EUR/USD on retracements, targeting multi-year highs.
- Sell USD/JPY into rallies, with downside potential toward the 130s.
“Whether this is coordinated policy or not, the trading floor is thumping,” added Quintero. “For active traders, this is a rare opportunity to ride a wave of macro disruption.”
About LTUFP Trading Desk
LTUFP provides advanced financial insights, macroeconomic analysis, and real-time trade strategies for retail and institutional investors. With a focus on actionable intelligence, the firm helps clients navigate volatility and capitalize on global market opportunities.
Media Contact
Organization: LTUFP
Contact Person: Mauro Quintero
Website: http://www.ltufp.com/
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Address:7001 E Belleview Ave, Denver, CO 80237, United States
Country:United States
Release id:28384
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