Market Overview
Warsh Pick Calms Fed Fears But No Dollar Turnaround
US President Donald Trump today finally named former Fed Governor Kevin Warsh to succeed Jerome Powell as Fed Chair, bringing an end to a prolonged and unusually turbulent succession process. Trump praised Warsh publicly, calling him a future “great” Fed chairman and signaling confidence in his leadership.
The announcement removed...
Dollar Consolidates as Warsh Hints and Shutdown Deal Calm Nerves
Dollar is consolidating within a narrow range today, reflecting a temporary balance between supportive near-term developments and persistent longer-term headwinds. Volatility has subsided, but price action lacks the conviction typical of a durable turnaround.
A sharp pullback in precious metals has played a key role in easing pressure on the...
Dollar Stays Heavy as Trump Renews Attacks on Fed Powell, Oil Surges
Trading in the FX markets has turned notably listless, with Dollar continuing to drift lower but without broad-based follow-through. Political pressure, however, returned swiftly. US President Donald Trump again lashed out at Fed Chair Jerome Powell, criticizing the decision to keep rates unchanged and reviving his long-running argument that...
Fed Non-Event Gives Way to Higher Yields and Record Metals
Market reaction to the Fed’s widely expected rate hold was muted overnight, with equities struggling to find direction. S&P 500 briefly pushed above the 7,000 mark, but the move lacked follow-through. By the close, all three major US indexes finished near flat.
Away from equities, two developments stood out. US...
Bessent’s Strong Dollar Talk Fails to Convince as Recovery Lacks Conviction
Dollar found modest support in early US trading, managing a mild recovery as markets position cautiously ahead of the Federal Reserve’s rate decision. The move looked more like a pause in selling than a decisive shift in sentiment, with traders reluctant to press positions before policy clarity.
Some stabilization came...
Dollar Breaches 1.2 Against Euro, Selloff Deepens as Trump Welcomes Weakness
Dollar’s selloff extended through the week, only managing a brief pause after slipping through the key psychological level of 1.2 against Euro briefly. While the pace of decline has slowed, there is little sign of a meaningful recovery taking shape. The bounce has so far been shallow. And, Dollar...
Dollar Reprieve Fades as Risk Aversion Reasserts, Swiss Franc Jumps
The brief reprieve for Dollar has already faded. As markets move into the US session, the greenback is once again under broad selling pressure, undoing the tentative stabilization seen earlier and returning to a defensive footing. There is little in the way of fresh fundamental catalysts today. Instead, the...
Dollar Consolidates as Geopolitics Take a Breather
The forex market has finally slipped into a period of stabilization, with Dollar shifting into consolidation after several volatile sessions. All major pairs and crosses are trading within yesterday’s ranges, signaling a collective pause. Part of the calm reflects a temporary cooling in geopolitical and trade-war rhetoric. Recent fears...
Dollar Stays on the Defensive as Shutdown Risk Returns to the Fore
Dollar remains generally weak as markets move into the early US session, even though outright selling pressure has eased slightly. The slowdown, however, looks more like consolidation than recovery, with the greenback still exposed to fresh political and policy risks. That vulnerability follows an already bruising period marked by...
Yen Roars on Takaichi’s Blunt Warnings, Dollar Selling Intensifies
Yen once again took center stage, staging a broad-based rally that gathered pace through the Asian session. USD/JPY dived below 154, a sharp reversal from last week’s run toward 160 — a level widely perceived by markets as Japan’s informal line in the sand. The move gained traction as...
Policy Chaos Takes Its Toll; Dollar Long-Term Downtrend Takes Shape
Relentless geopolitics has continued to haunt global markets since the turn of the year, and last week offered little respite. What has changed, however, is not the scale of the headlines but the market’s tolerance for them. Investors appear increasingly fatigued by policy uncertainty and abrupt reversals from the...
Yen Bounce Short-Lived Without Market Buy-In, Loonie Bounces After Retail Sales
Yen’s sharp rebound today, triggered by suspected official intervention, is already fading quickly, highlighting the market’s skepticism toward one-off defensive actions. After an abrupt spike higher, the currency quickly lost momentum as traders faded the move. The development is inline with the view that government action alone is insufficient...
Yen Snaps Back on Intervention Signs, Japan Draws Line Near 160
Yen staged a sharp rebound in early European session on suspected intervention, interrupting a renewed bout of selling that followed the Bank of Japan policy decision. The bounce came after markets judged the BoJ’s message insufficiently hawkish to arrest currency weakness.
Before the reversal, USD/JPY pushed beyond 159, extending gains...
Relief Rally Continues, But Trust Gap Remains; Dollar Stays Soft
Risk-on sentiment returned to global equity markets today as tensions surrounding Greenland appeared to de-escalate further. Stocks across regions pushed higher, reflecting relief that the immediate geopolitical shock has been contained, at least for now. The shift followed fresh comments from US President Donald Trump, who elaborated on the...
Greenland Framework Triggers Risk-On Turn, Trade War Fears Recede
Market sentiment staged a sharp U-turn after signs that U.S.–European tensions over Greenland had moved toward resolution. The immediate risk of a transatlantic trade war has been averted for now, allowing investors to unwind defensive positioning built earlier in the week. The pivot lifted global equities, with Japan leading...
Markets Take Davos in Stride, Trump Rules Out Force, Keeps Pressure on Greenland
Market reaction to US President Donald Trump’s highly anticipated speech at the World Economic Forum was relatively muted, suggesting investors had already priced in a confrontational tone. Greenland remained the central issue for market participants. Trump’s remarks offered partial relief, as he appeared to rule out military action to...
Markets Catch Their Breath, Trumps Speech in Davos Now Key
Global markets appeared to stabilize somewhat today after the sharp U.S. selloff overnight, which saw the DOW suffer its worst one-day loss since October. That said, the underlying source of stress has not faded. Greenland-related tensions remain unresolved, with no visible path toward de-escalation. The current stabilization looks more...
Dollar, Stocks, and Treasuries All Down as Trump Escalates Pressure on Allies
The “Sell America” trade gathered further momentum today, with U.S. assets coming under broad pressure as markets returned to full participation. U.S. Treasuries led the move, with the 10-year yield pushing toward 4.3% as bond selling accelerated. U.S. equity futures point to a sharply lower open. The combination of...
Dollar Slumps as “Sell America” Trade Reawakens
Dollar is under broad pressure today as markets return from Monday’s U.S. holiday with persistent focus on geopolitical risk. The move comes along with sharp rise in 10-year Treasury yield, which pushed above 4.27%, extending last week’s decisive break above the 4.2% threshold after nearly a month of failed...
Europe Pushes Back as Greenland Tariff Threats Reshape Risk Outlook
Greenland dominated global headlines today as geopolitical risk surged back into focus. What had previously looked like an unusual diplomatic dispute escalated sharply over the weekend, forcing markets, governments, and corporates to reassess transatlantic relations and the risk of renewed trade war.
The escalation followed a pledge by US President...