UPDATE: The U.S. dollar is experiencing a significant decline as precious metals surge, following new developments involving the Federal Reserve. In an unprecedented move, President Donald Trump has intensified his attacks on the Fed’s independence, coinciding with the announcement of a criminal investigation into Fed Chair Jerome Powell.
This situation has sent shockwaves through the market, prompting investors to react swiftly. The dollar fell during European morning trade, while precious metals reached remarkable highs. As of now, the EUR/USD pair has climbed to nearly 1.1700, currently sitting around 1.1680, reflecting a 0.4% daily gain. Meanwhile, the GBP/USD has increased by 0.5%, trading at 1.3463, and the USD/CHF has dipped by 0.5% to 0.7975.
In contrast, the Japanese yen has shown little strength against the dollar. The USD/JPY pair briefly dropped to 157.60 but quickly rebounded, now trading at 157.88. This indicates a lack of appetite for the yen amid the dollar’s struggles.
The real winners today are precious metals. Gold has surged to new all-time highs, briefly reaching $4,600, while silver skyrocketed by over 5%, maintaining levels above $84.
In the equity markets, European indices initially followed U.S. futures lower but managed to recover some ground. The DAX is now trading higher, although slight declines are still observed in the CAC 40 and IBEX. U.S. futures, however, paint a more pessimistic picture, with S&P 500 futures down 0.5% and Nasdaq futures down 0.7%.
These developments come as investors brace for critical upcoming events, including the U.S. Consumer Price Index (CPI) report scheduled for tomorrow, the kickoff of earnings season for major banks, and a potential Supreme Court ruling on tariffs. Furthermore, geopolitical tensions surrounding Trump’s interactions with Greenland and Iran are adding uncertainty to the market landscape.
As the situation unfolds, market participants are encouraged to stay alert for further updates. The implications of this investigation and the Fed’s response could have lasting effects on the financial landscape. Investors are watching closely how Wall Street reacts to these developments in the coming days.
