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