empty
22.04.2025 09:00 AM
Loss of Confidence in the Fed Will Pressure the Dollar (Bitcoin Likely to Continue Rising, USD/CAD to Decline)

On Monday, the U.S. stock market experienced a sharp decline, pulling down many global exchanges, as the "turbulent" actions of President Trump continue to shift from one hot topic to another.

Donald Trump once again intensified his criticism of Federal Reserve Chairman Jerome Powell, raising concerns about the central bank's independence and shocking investors. On his social network Truth Social, he called Powell a "lagging gentleman and a big loser," urging him to cut interest rates immediately. This unprecedented pressure for the U.S. came just days after Trump suggested he might consider removing Powell from his post. The growing pressure on the Fed triggered a plunge in U.S. equities and further weakened the dollar in the Forex market.

Markets are already under constant stress due to uncertainty over global trade, particularly with China. This added strain on the Fed appears to be seriously undermining investor confidence. Negotiations between Washington and Beijing show little progress and are increasingly marked by rising tensions.

Why is Trump pressuring the Fed, and what is he aiming to achieve?

I touched on this topic in yesterday's article and will now briefly summarize it again. Trump believes that the revival of the real U.S. economy cannot happen amid a strong dollar relative to other currencies. Since he cannot lower wages, he targets the dollar's value. A weaker dollar gives U.S. goods a competitive edge in global markets. That's one reason. The second is that lower interest rates open the door for faster economic growth, albeit at the risk of higher inflation. Trump is prioritizing economic growth—by any means necessary. Hence, there is pressure on the Fed, with the potential to replace Powell with someone more compliant.

In light of recent events, the dollar is under the most intense pressure in years. On Monday, the dollar index fell below the 98.00 mark—the lowest level since February 2022. With trust in the Fed eroding, demand for U.S. assets—dollars and Treasuries—is increasingly viewed as less reliable and less of a safe haven due to mounting uncertainty over the Trump administration's policies.

The yield on 10-year Treasuries at the time of writing stood at 4.429%. While not at the local high of 4.800% seen on January 13, 2025, it still worries market participants, forcing them to dump government bonds. Another major concern is China's high likelihood of large-scale Treasury sales amid the ongoing trade war, which could crash the U.S. government bond market and plunge U.S. finances into chaos.

What can we expect from the markets today?

It seems the previously initiated negative trend will persist. It may continue to pressure the dollar in Forex and the U.S. equity market while supporting the cryptocurrency market and gold prices locally. At the same time, a further deterioration in the situation may force Trump to "blink" and begin adjusting his geopolitical and economic stance, fearing a collapse of the national economy due to what his opponents see as excessively drastic reforms and radical policy shifts.

Forecast of the Day:

This image is no longer relevant

This image is no longer relevant

Bitcoin

The cryptocurrency is gaining support from two factors: the significant weakening of the dollar in Forex, the avoidance of dollar-denominated assets, and the transfer of some capital into crypto. Bitcoin may continue rising to 92,796.25 if it breaks above 88,731.00, escaping the wide range of 83,024.25–88,731.00. A buying point could be the level of 88,894.58.

USD/CAD

The pair is trading near the 1.3800 level amid overall dollar weakness and relative stabilization in crude oil prices. If it drops below this mark, it could continue falling toward 1.3700 and 1.3600. A suitable entry point for selling the pair could be 1.3789.

Seleccione el marco de tiempo
5
min
15
min
30
min
1
hora
4
horas
1
día
1
s.
Gana con los cambios en el valor de las criptomonedas con InstaForex.
Descarga MetaTrader 4 y abre tu primera operación.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    UNIRSE AL CONCURSO

Recommended Stories

Análisis del par GBP/USD. El 2 de mayo. La divisa estadounidense subió por poco tiempo

El par de divisas GBP/USD continuó cayendo durante el jueves. El dólar fortaleció sus posiciones durante tres días consecutivos, para lo cual objetivamente no había ninguna razón. El contexto macroeconómico

Paolo Greco 07:32 2025-05-02 UTC+2

Análisis del par EUR/USD. El 2 de mayo. Al dólar le espera un nuevo colapso. Y no será el último.

El par de divisas EUR/USD volvió a negociarse el jueves con bastante calma, pero esta vez la divisa estadounidense ya no logró mostrar un fuerte crecimiento. Lo bueno, en pequeñas

Paolo Greco 07:32 2025-05-02 UTC+2

Análisis del par EUR/USD. El 30 de abril. El mayor misterio de 2025 ha sido revelado.

El par EUR/USD continuó negociándose el martes dentro de un rango limitado con una volatilidad bastante baja. En realidad, 80 puntos por día para el euro es un valor

Paolo Greco 07:32 2025-04-30 UTC+2

Análisis del par GBP/USD. El 30 de abril. La democracia ficticia de EE.UU. y el impeachment a Trump.

El par GBP/USD se corrigió ligeramente a la baja después de subir el lunes sin motivo aparente. Sin embargo, llamar a este movimiento mínimo hacia abajo un «crecimiento del dólar»

Paolo Greco 07:32 2025-04-30 UTC+2

EUR/USD. Negociación en rango a la espera de informes importantes

El par EUR/USD lleva ya dos semanas consecutivas operando dentro de la figura 13 (con avances puntuales hacia la figura 14), reaccionando a todos los eventos fundamentales dentro del rango

Irina Manzenko 13:09 2025-04-29 UTC+2

Análisis del par GBP/USD. El 29 de abril. ¿Son importantes los datos de desempleo y del mercado laboral?

El par de divisas GBP/USD también se negoció el lunes con baja volatilidad y prácticamente en una dirección lateral, aunque la libra esterlina mantiene una ligera inclinación alcista. A pesar

Paolo Greco 07:40 2025-04-29 UTC+2

Análisis del par EUR/USD. El 29 de abril. Los débiles se rinden, los fuertes resisten.

El par de divisas EUR/USD el lunes permaneció inmóvil. No hubo noticias de Donald Trump sobre disputas comerciales durante el fin de semana, y para el propio lunes

Paolo Greco 07:40 2025-04-29 UTC+2

Análisis del par GBP/USD. El 28 de abril. A la libra solo le queda no estropear su celebración.

El par de divisas GBP/USD el viernes también se negoció con baja volatilidad y sin ningún entusiasmo. Sin embargo, la libra esterlina todavía mantiene una ligera inclinación alcista

Paolo Greco 07:28 2025-04-28 UTC+2

Análisis del par EUR/USD. 28 de abril. Trump en espera, el mercado en espera.

El par de divisas EUR/USD el viernes prácticamente no se movió. En la ilustración de abajo se puede ver que la volatilidad en las últimas semanas no puede calificarse

Paolo Greco 07:28 2025-04-28 UTC+2

Análisis del par GBP/USD. 25 de abril. En la Fed empiezan a preocuparse de verdad.

El par GBP/USD el jueves se negoció al alza, manteniéndose cerca de sus máximos de los últimos tres años. A pesar del fuerte crecimiento de la libra esterlina

Paolo Greco 07:28 2025-04-25 UTC+2
¿No puede hablar ahora mismo?
Ingrese su pregunta en el chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.