📆 Monday, April 21
► European markets were mostly closed for Easter Monday, leaving little direction across the region. London, Paris, and Frankfurt exchanges remained shut. The ECB’s recent dovish tone and ongoing trade tensions with the US continue to shape market sentiment. Pope Francis’s death at age 88 added a somber tone to European headlines. Cardinal Kevin Farrell formally announced the Vatican interregnum period. The EUR, however, rallied sharply amid strong USD weakness following Trump's plan to remove Fed's chairman Jerome Powell from his position, climbing past $1.15, its highest level since 2021. The GBP/USD pair rose above 1.34000 in the meantime – a level last reached in September 2024.
► US stock futures opened the week with losses as futures for the S&P 500 and Nasdaq 100 are trading about 1% lower with also the USD sharply lower as political pressure mounted on the Federal Reserve. President Trump’s escalating criticism of Fed Chair Jerome Powell, including public remarks suggesting he could remove him, triggered a sharp market reaction. The DXY fell over 1%, extending a three-week decline, while every G-10 currency gained against the USD. Hedge funds were reported to be selling the USD aggressively, as safe-haven flows lifted the JPY and CHF. Analysts warned that perceived threats to the Fed’s independence could erode global confidence in U.S. monetary leadership and the dollar’s role as reserve currency.
► Asian stocks closed mixed in holiday-thinned trade, as PBoC held rates steady and geopolitical concerns lingered. Japan’s Nikkei 225 fell 1.3%, snapping a two-day winning streak as the JPY strengthened to 141/USD. The Shanghai Composite rose 0.45%, recovering from earlier losses, after China’s central bank left its benchmark lending rates unchanged for a sixth straight month. China’s government issued fresh warnings against side deals with the US that undermine Chinese interests, vowing to take “reciprocal countermeasures.” India’s Sensex gained 0.80%, while Hong Kong and Australia markets remained closed for the holiday.
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