NordKern active market outlook, reacting to the latest news.
Market Alert | Trump Questions Powell’s Job - Gold Rallies, Dollar Slips
Jul 16 2025 16:56:19 CET: CBS CITING SOURCES:
TRUMP ASKED REPUBLICAN LAWMAKERS IF HE SHOULD FIRE FED'S POWELL
Market Reaction:
XAUUSD +$45/oz intraday, currently trading near session highs.
Safe-haven demand and inflation hedge as Fed credibility is questioned.
DXY Weakens notably against both the 
EXY and the 
JXY
Markets pricing in higher political risk premium, potential dovish tilt under Trump.
Volatility: Spiking across FX and commodities. VIX and MOVE indexes also showing upward pressure.
Context Matters:
While the Fed Chair cannot be dismissed without cause, even the suggestion of removal injects significant uncertainty into the macro backdrop. Historically, markets react negatively to perceived threats to Fed autonomy (see: Nixon-Burns, Trump-Powell 2018). This development comes just months before the U.S. election, adding a new layer of complexity for macro traders.
What to Watch:
- Fed Speakers: Any defense of Powell or pushback could stabilize markets. Or not.
- Trump Campaign Statements: Will he double down or walk it back?
- Upcoming Data: A dovish-leaning CPI/Jobs print could supercharge gold and further weigh on the dollar.
- Volatility: Traders should adjust position sizing and risk accordingly.
Increased geopolitical and monetary risk are back on the table. Traders should remain nimble, reduce leverage where appropriate, and stay alert to headline risk. Gold and FX are likely to remain reactive into the US session.
NordKern
Market Alert | Trump Questions Powell’s Job - Gold Rallies, Dollar Slips
Jul 16 2025 16:56:19 CET: CBS CITING SOURCES:
TRUMP ASKED REPUBLICAN LAWMAKERS IF HE SHOULD FIRE FED'S POWELL
Market Reaction:
XAUUSD +$45/oz intraday, currently trading near session highs.Safe-haven demand and inflation hedge as Fed credibility is questioned.
DXY Weakens notably against both the EXY and the JXY Markets pricing in higher political risk premium, potential dovish tilt under Trump.
Volatility: Spiking across FX and commodities. VIX and MOVE indexes also showing upward pressure.
Context Matters:
While the Fed Chair cannot be dismissed without cause, even the suggestion of removal injects significant uncertainty into the macro backdrop. Historically, markets react negatively to perceived threats to Fed autonomy (see: Nixon-Burns, Trump-Powell 2018). This development comes just months before the U.S. election, adding a new layer of complexity for macro traders.
What to Watch:
- Fed Speakers: Any defense of Powell or pushback could stabilize markets. Or not.
- Trump Campaign Statements: Will he double down or walk it back?
- Upcoming Data: A dovish-leaning CPI/Jobs print could supercharge gold and further weigh on the dollar.
- Volatility: Traders should adjust position sizing and risk accordingly.
Increased geopolitical and monetary risk are back on the table. Traders should remain nimble, reduce leverage where appropriate, and stay alert to headline risk. Gold and FX are likely to remain reactive into the US session.
NordKern
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.