The USD Index halted yesterday’s sell-off, which was triggered by mixed comments from the U.S. administration regarding the official end of trade negotiations (USDIDX: +0.03%). Sentiment was stabilized by recent remarks from the U.S. Treasury Secretary, who once again sought to calm markets amid tensions between Trump and Powell.
Scott Bessent stated that he sees "no reason why Powell should step down [as Chair of the Federal Reserve]." With this, the Treasury Secretary softened the tone of earlier suggestions that Powell should review the Fed’s operations beyond monetary matters. These comments refer to accusations from the Trump administration that the Federal Reserve building’s renovation project was financially unviable. In recent days, the renovation has sparked controversy as a potential reason for Trump to dismiss Powell—provided that a crime had been committed.
Bessent also commented on the ongoing trade negotiations with China, saying they have entered "a whole new level." According to the U.S. Treasury Secretary, the talks with Beijing may be extended until August 12, and a “series of new trade agreements” will be announced in the coming days.
USDIDX returned to the 10-period exponential moving average (EMA10, yellow) following Scott Bessent’s interview. Source: xStation5
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
