£-€ increases by 0.5% for the third month in a row

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waterman

Written by Dan Waterman
January 30th 2026
President Trump names new Fed Chair and USD strengthens..

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.