Why US Manufacturing ETFs Are Defying a Weakening Dollar

Episode 102 of The Global Economy Podcast unpacks a rare divergence: the US dollar is sliding against the euro and yen, yet American manufacturing ETFs are holding steady. Lucas and Luna examine how the trade-weighted dollar index dipped to 120.7 while the S&P 500 ticked up 0.1% over the past week. They drill into why factory output and reshoring momentum are decoupling from currency moves, using the recent 57,000 payrolls miss—the smallest gain in over a year—as a counterintuitive backdrop. The conversation explores how import costs for raw materials, export competitiveness, and corporate hedging strategies are shifting. They also touch on Europe's struggle to quit Chinese air conditioners while rebalancing trade, and what that means for US manufacturers. A focused look at why a weaker dollar isn't dragging down industrial ETFs like XLI and why the narrative of American industrial strength may be more nuanced than headlines suggest. #USDollar #Manufacturing #ETFs #TradeWeightedDollar #Reshoring #FederalReserve #Euro #Yen #ChinaTrade #Tariffs #IndustrialProduction #XLI #JobsReport #CurrencyHedging #GlobalTrade #Economics #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo