🌟 Market Highlights:

What’s Driving Sentiment Today?

1. Powell Safe in His Seat – Trump Steps Back

Donald Trump confirmed he won't seek to remove Jerome Powell from his role as Fed Chair. This signals a potential stabilisation in U.S. monetary policy leadership—at least for now. How might a more predictable Fed influence your borrowing or investment outlook?

2. Trade Tensions Begin to Cool?

Market chatter hints at softening rhetoric around trade disputes, with signs of progress behind the scenes. While no major breakthroughs yet, any reduction in hostilities could support risk appetite. Do you rely on global supply chains or international sales? Could reduced tariffs improve your cost base or margins?

Market Recap:

Sentiment Lifts as Trade Talk Tone Softens

Markets bounced back strongly yesterday after Monday's downturn, with renewed optimism helping risk assets and the US dollar to recover. Investor confidence was buoyed by signs of easing trade tensions, as Scott Bessent noted that the current standoff with China is unsustainable—hinting at a potential de-escalation. Donald Trump also contributed to the upbeat tone, suggesting he would take a more conciliatory approach to China and indicating that tariffs could significantly drop if a trade deal is struck.

Meanwhile, the US dollar gained further ground after Trump reversed his earlier threat to fire Fed Chair Jerome Powell, reassuring markets concerned about political interference in monetary policy.

🔍 Today’s Market Snapshot:

USD Finds Support Amid Trade Progress and PMI Watch

The US dollar regained some ground overnight as market pressure eased following comments from Donald Trump that signaled improving trade relations. Reports that the White House is nearing agreements with Japan and India, along with ongoing discussions with the UK, added to the dollar's momentum. This uptick has contributed to a softer euro, as currency markets adjust to the more upbeat trade outlook.

Looking ahead, the spotlight is now on today’s PMI releases from the US, UK, and Eurozone. With trade-related worries looming large, US figures will be especially important for gauging whether the economy is regaining strength. Some analysts suggest Monday’s dollar dip may have been overstated due to thin market liquidity, and that technical signals now point to a potential rebound—but follow-through will depend on strong economic data.

Key Takeaways:

• 💵 Dollar Strengthens: Positive trade headlines are lifting the USD—could this be the start of a longer recovery?
• 🌍 EUR Under Pressure: A stronger dollar has weighed on the euro—how might this shift affect your euro-based costs or revenues?
• 📊 PMI Data in Focus: With US growth concerns tied to tariffs, today's PMI data could shape short-term dollar trends—are your FX strategies positioned for surprises?
• 🧠 Technical Rebound Possible: Was Monday’s USD weakness just a blip? Traders point to potential upside if data confirms resilience.

👉 Could a stronger dollar impact your upcoming payments, or is now the right time to lock in currency rates?

23rd April 2025

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