Trump assault on Federal Reserve fuels “Sell America” trade

Trump unleashed a series of personal attacks on Fed chair Powell and a key advisor confirmed that Trump is considering whether to fire him, although the legality of this is unclear and Powell has stated that he does not believe Trump can do so. Regardless, this newest assault on US institutions further unnerved investors, who have been selling US stocks, bonds and currency together again since markets reopened on Sunday night, a highly unusual and concerning market move. The extent to which markets can focus on anything other than unpredictable eruptions from Trump’s administration this week is unclear. Yet, in addition to the tape bombs on tariffs, monetary policy and others, this week we’ll receive the first systematic gauging of the damage done to business confidence by Trump’s erratic policies. On Tuesday, the April PMI reports from all of the world’s main economic areas will be released, giving us the opportunity to assess the impact not only on absolute terms, but relative ones as well. As for real economic data, that will have to wait, except for the weekly jobless claims data out of the US, which now takes on added importance.

Please click link for our full market report – https://go.on.ebury.com/G10Weekly_22.04.2025

Highlights:

– Calm week shattered by Trump assault on the Fed.

– USD falls to new lows on “sell America” narrative.

– EUR/USD surges above 1.15 despite dovish ECB.

– Soft UK inflation print opens door to BoE cut in May.

– BoC holds rates steady, but warns over recession risk.

– High-beta SEK and NOK post sharp rallies vs. USD.

If you wish to discuss the impact regarding current market conditions and how Ebury can help mitigate risk when it comes to your businesses currency exposures, then please get in touch.

Have a great day.

Jack Entwistle

Key Account Director

T – 020 3872 6670

M – 07961777463

jack.entwistle@ebury.com