Currency news / April 23, 2025

Markets flip flop as Trump flip flops

3 min read Thanim Islam

Thanim IslamApril 23, 2025

Market snapshot:

Trump concedes that Powell wont be fired
Trade wars tensions easing?

Yesterday's currency recap

Markets rebounded sharply yesterday following Monday's sell-off, with the dollar also recovering some of its earlier losses caused by Trump's threats to fire Fed Chair Jerome Powell.

The improved sentiment was supported by Scott Bessent's comments that he sees trade tensions with China de-escalating as the current stand-off is unsustainable. Bessent’s comments were further supported by Donald Trump who said he’ll be “very nice” to China and tariffs will drop substantially should a deal be reached between the US and China.

The dollar drew additional support after Trump went back on his word from the weekend, now to say that he doesn't plan on firing Jerome Powell.

Today's GBP rates

Currency pair	Daily move*	Indicative rate**
GBPAUD	0.50%	2.0951
GBPCAD	-0.23%	1.8475
GBPCHF	0.62%	1.089
GBPDKK	0.40%	8.7062
GBPEUR	0.40%	1.1662
GBPJPY	-0.10%	188.275
GBPNOK	-0.30%	13.8387
GBPNZD	0.15%	2.233
GBPSEK	-0.38%	12.6975
GBPUSD	0.00%	1.3381

*Daily move - against G10 rates at 7:30am, 23.04.25
** Indicative rates - interbank rates at 7:30am, 23.04.25

Key data points

Currency	Event	Period	Consensus	Previous
EUR	Manufacturing PMI	Apr	47.50	48.60
EUR	Services PMI	Apr	50.50	51.00
EUR	Composite PMI	Apr	50.30	50.90
GBP	Manufacturing PMI	Apr	44.00	44.90
GBP	Services PMI	Apr	51.50	52.50
GBP	Composite PMI	Apr	50.50	51.50
USD	Manufacturing PMI	Apr	49.00	50.20
USD	Services PMI	Apr	52.80	54.40
USD	Composite PMI	Apr	52.20	53.50

What we think

Trump's comments have eased some pressure off the USD overnight. Further reports that the White House is close to agreements with Japan and India, and in talks with the UK, is also helping the dollar's case. As a result we’re seeing some EUR weakness.

PMI numbers from the EU, UK and US are due out for release later today. Considering how concerning tariffs have been for the US economy, all eyes will be on the US numbers. There has been chatter amongst some trading desks suggesting that the dollar could be due for a rebound driven by technical indicators and market positioning; and that the moves on Monday were exacerbated by thin liquidity conditions. Yesterday's rebound is evident of that, however data showing improvements will be needed if the overnight moves on the dollar are to persist.

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