Traders are braced for this week’s inflation reading to be higher than previously expected—triggering warnings of "unprecedented

The index's decline is an indication of dollar devaluation, which Dogecoin (DOGE) co-founder Billy Markus mocked amid a gold rally.

The Canadian dollar strengthened to ‌nearly a two-week high against its U.S. counterpart on Tuesday as investors' negative reaction to the threat of a fresh U.S. trade clash with Europe weighed on the greenback.

The dollar sank 0.31% against the euro to $1.16 and tumbled 0.32% against the yen to 157.58. Meanwhile, gold rose 1.95% to a fresh record of $4,684.30 per ounce. Silver jumped 5.66% to $93.53, also a new high. Due to the Martin Luther King Jr. Day holiday on Monday, U.S. stock and bond futures were inactive.

The dollar (DXY) has strengthened since the start of the year and shows only few signs of weakening. We take a look at the Dollar Index and EUR/USD to assess the current state of the market.

The ​dollar retreated to its lowest level in a week in early trading on Monday after threats ‌from the White House towards the European Union over the future of Greenland triggered a broad selloff across U.

The dollar was lower against a basket of currencies. Societe Generale said concerns that foreign investors could pull out of U.S. assets and weaken the dollar looked overdone for now.

Over the past 30 and 60 days, the correlation of changes in the Dollar Index and two-year US yields is at the lower end of where it has been in the last eight months (~0.38-0.40).