The big swings after the US close began with Trump striking a markedly softer tone on China, telling reporters that the U.S. is “doing fine” with Beijing and that he would be “very nice” in any trade talks. Still, he warned that if no agreement is reached, Washington will dictate terms — a statement that underscores this is a pause, not a pivot.
More significantly, Trump also signalled a commitment to Fed independence, stating explicitly that he does not intend to fire Chair Jerome Powell. This immediately buoyed markets, easing recent fears over institutional and financial stability.
After a strong rally during the US Tuesday session, equities extended gains following Trump’s comments on Powell. The US dollar also strengthened: EUR/USD dropped below 1.1320 and USD/JPY surged past 143.00. Gold prices continued their retreat.
Still, caution lingers. As one market strategist noted, “a sudden rhetorical shift is not a policy pivot.” Attention now turns to Beijing, with markets watching closely for any response to Washington’s apparent softening — or its absence.
As liquidity returned, the dollar reversed course. EUR/USD and USD/JPY fully retraced their moves, while AUD/USD and NZD/USD are now higher than levels seen before Trump’s remarks. US equity index futures are holding on to most — though not all — of their gains.
Gold also rebounded from its earlier lows, before coming under renewed pressure in the past hour on news that the Shanghai Gold Exchange has increased the trade margin for some gold futures contracts to 13% from 12%.
Tesla made headlines after reporting a 71% plunge in quarterly profits, with underlying operations swinging to a loss once EV credits and one-off items were stripped out. Analysts flagged growing reputational risks, particularly related to CEO Elon Musk’s high-profile involvement in the Trump administration. Musk said he plans to significantly scale back his time on the "DOGE" initiative in the coming month, though the implications for broader sentiment around the brand remain unclear.
This article was written by Eamonn Sheridan at www.forexlive.com. Read More Details
Finally We wish PressBee provided you with enough information of ( ForexLive Asia-Pacific FX news wrap: Trump 'won't fire Powell' comment: Equities & USD up )
Also on site :
- Everything You Need To Know About 'Dancing with the Stars' Season 34
- Iran sanctions state TV channel for mocking Saudi Foreign Minister
- Elon Musk claims Tesla demonstrators are somehow being paid by the government ‘waste and fraud’ he is fighting with DOGE—they just won’t admit it