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26 Jun 2025

USD losing altitude

• US trends. Outlook for US rate cuts supported sentiment & exerted more pressure on the USD. AUD at the top of its multi-month range.• Macro forces. Patchy US growth & signs the labour market is loosening. Reports also indicate Pres. Trump may name the next Fed Chair early.• USD downtrend. Various factors continue to move against the USD. There will be bumps along the way but we see the USD weakening over time. Global Trends The de-escalation of the situation in the Middle East has seen investors quickly refocus their attention on US macro trends. The run of US...

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“Shadow Fed Chair” Fears Drive Dollar Lower

The dollar is trading near a three-year low and Treasury yields are down across the curve after a report suggested that Donald Trump could appoint the next Federal Reserve chair early in an attempt to push interest rates in a more favourable direction. According to the Wall Street Journal, frustration with the central bank’s easing trajectory has led the president to consider naming a successor to Jerome Powell in the coming months, with Kevin Warsh, Christopher Waller, Kevin Hassett, Scott Bessent, and David Malpass all emerging as potential contenders for a role that would be expected to steer the central...

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