Bloomberg Daybreak: Asia Edition Dollar Drops, Gold Rises as Trump Ousts Fed's Cook
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Aug 26, 2025 
Peter McGuire, a currency trader and CEO of Trading.com Australia, and Mary Ann Bartels, Chief Investment Strategist at Sanctuary Wealth, dive into the fallout from Trump's dismissal of Federal Reserve Governor Lisa Cook. They discuss how this impacts the U.S. dollar, driving it down while gold values rise. Market sentiments shift as doubts about interest rate cuts surface, amid concerns over export curbs on chip technology. The duo analyzes shifting economic dynamics and monetary policy’s influence on global markets, providing insight into the ever-evolving financial landscape.
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Dismissal Could Lower Rates, Weaken Dollar
- Removing a Fed governor can increase the chance of larger or earlier rate cuts if the presidency appoints dovish replacements.
- That prospect tends to weaken the dollar and raise FX volatility.
Prepare For Bigger FX Moves
- Expect heightened FX volatility and position risk in dollar pairs, especially if rate-cut expectations accelerate.
- Adjust position sizing and hedges to account for potential successive Fed cuts and a softer dollar.
Euro Gains May Be Mature
- The euro's rally against the dollar has been driven by one-way moves this year and could extend if US cuts materialize.
- Much of the large euro upside is already priced, so future gains may slow.