The dollar suffered a sharp sell-off yesterday on a re-emergence of the “sell America” trade after Trump attacked Fed Chair Powell over the weekend, stating he needs to cut interest rates to avoid slowing down the economy. Markets went into risk-off mode, seeing equities drop and markets seeking out the safety of the Swiss franc, Japanese yen and gold.
*Daily move - against G10 rates at 7:30am, 22.04.25
** Indicative rates - interbank rates at 7:30am, 22.04.25
Some of yesterday’s dollar and equity sell-off has eased a tad this morning. Nonetheless, we remain way of further weakness on the greenback and markets depending on further comments from the Trump administration that could take out further appetite for US assets.
For the rest of today, we have EU consumer confidence numbers as well as several speakers from the Fed.
For the rest of the week, we have PMI numbers from the EU, UK and US to look forward to. In light of recent concerns over the US economy, US PMIs are expected to have a particularly significant influence on market sentiment.
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