USD rallies as Trump eases pressure on Fed Chair Powell
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Daily Currency Update
The US dollar surged across the board this morning as investor confidence rebounded following President Donald Trump's decision to step back from threats to dismiss Federal Reserve Chair, Jerome Powell.Earlier in the week, markets were rattled by concerns over the Fed's independence, after Trump launched a series of public criticisms over Powell’s reluctance to cut interest rates since the president’s return to office in January. The easing of tensions reassured investors and helped stabilise expectations around US monetary policy, driving renewed strength in the dollar across major currency pairs.
Key Movers
The pound slipped against the euro on renewed eurozone strength, though it remained well above the five-month lows seen earlier this month. The euro found support as US assets came under pressure following a wave of policy-driven sell offs from the US administration, boosting demand for alternative currencies.Sterling’s muted reaction to last week’s UK economic data masked growing concerns among analysts. A dovish tilt in Bank of England sentiment could create further headwinds for the pound. March inflation slowed to a three-month low, while signs of softening in the labour market just ahead of a corporate tax hike have added to worries over the UK’s economic resilience and future monetary policy path.
Expected Ranges
- GBP/USD: 1.3275 - 1.3365 ▲
- GBP/EUR: 1.1655 - 1.1735 ▲
- GBP/AUD: 2.0745 - 2.0815 ▲
- EUR/USD: 1.1375 - 1.1455 ▲