President Trump names new Fed Chair and USD strengthens..
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| The US Dollar is up across the board today after Trump announces the most 'hawkish' candidate on his list as the next Chairman of the Federal Reserve; Kevin Warsh.
This is good news for USD (up 0.3%+ today), but bad news for US stocks (-1%), precious metals (mainly serious profit taking happening here but nonetheless effected; silver -20% and Gold -8%) and Bitcoin (9-month low) as what happens this year with US interest rates now looks uncertain.
Warsh served on the Fed's Board of Governors from 2006-2011 and so is a strong candidate, but has a reputation as an inflation 'hawk'. He has however recently sided with Trump's views for lower interest rates, so let's see what happens come May/June.
Remember that since covid, UK/US interest rates are generally never more than 0.5%+ away from each other and so this news affects the BoE & £.
GBP v EUR has continued its comeback from the UK Budget uncertainty and claimed 0.5% again this month. Small things often become big things of course and that's now a 1.5% gain in 3-months for the pair.
But as we keep reporting, £-€1.1550 is being repelled at every opportunity at the moment and this strong resistance level is going to cap potential rallies in the near future. |
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