Global markets kicked off Friday with high volatility as politics once again took center stage ๐บ๐ธโก
All eyes are firmly locked on President Donald Trumpโs upcoming pick for the next Federal Reserve Chair โ and the reaction has been swift.
๐ฆ USD Comes Back Strong
The US Dollar (USD) staged a sharp rebound ๐ after hitting four-year lows, driven by:
๐ฐ Reports that Kevin Warsh, former Fed Governor, could be nominated as Fed Chair
๐๏ธ A deal to avoid a US government shutdown
๐ฐ Profit-taking after recent USD weakness
โธ๏ธ The Fedโs cautious decision to keep rates on hold
๐ The Dollar is strongest against the Australian Dollar, outperforming all major peers today.
๐ Politics & Geopolitics Shake Markets
Trump-related headlines continue to inject uncertainty:
โ๏ธ Threat of 50% tariffs on Canadian aircraft
๐ข๏ธ New tariffs on countries supplying oil to Cuba
โ๏ธ Rising Middle East tensions, with Trump signaling talks with Iran while US naval presence increases
Despite todayโs bounce, the USD remains on track for a second straight weekly decline, pressured by Trumpโs unpredictable policies and concerns over Fed independence โ ๏ธ
๐ฑ Major Currency Moves
๐ฆ๐บ AUD/USD sinks below 0.7000, hit by profit-taking ahead of a likely RBA rate hike
๐ฏ๐ต USD/JPY flirts with 154.00, as softer Tokyo CPI weakens the Yen
๐ช๐บ EUR/USD claws back toward 1.1900, but bears still control ahead of GDP data
๐ฌ๐ง GBP/USD holds near 1.3750, capped by Dollar strength
๐ช Gold & Oil Under Pressure
๐ก Gold plunges nearly 4%, trading near $5,200, after briefly testing $5,100
๐ข๏ธ WTI crude oil retreats from five-month highs, trading near $64, as Trump signals openness to talks with Iran
๐ What to Watch Next
Markets now turn their focus to:
๐ฆ Trumpโs official Fed Chair nomination
๐ US Producer Price Index (PPI)
๐ฉ๐ช German & Eurozone Q4 GDP data
๐ Bottom Line:
๐ต The Dollar is bouncing
๐ก Gold is bleeding
๐ Politics are driving price action
โ ๏ธ Expect continued volatility as headlines and data battle for control.
