The U.S.
dollar’s slide to a three-year low is driving a boom in foreign exchange (FX)
trading activity, prompting Singapore-based FX platform Spark Systems to expand
its workforce as volatility in currency markets intensifies.
The dollar
index, which measures the greenback against a basket of major currencies, fell
as low as 97.92 yesterday (Monday), its lowest level since March 2022, amid
growing tensions between President Donald Trump and the Federal Reserve. The
index was down 1% at 98.38 in late trading.
Wong Joo Seng
Spark
Systems, backed by financial giants Citigroup and HSBC, plans to hire up to 13
new staff members over the coming year to handle increased trading volumes,
Chief Executive Officer Wong Joo Seng told Bloomberg in an interview.
“Our
average daily trading has jumped to about $10 billion from around $8 billion
late last year,” Wong said. “Trading at Spark is now at a
record.”
Market Volatility Drives
FX Trading Surge
The company
attributes much of the increased activity to policies implemented by the Trump
administration, which have triggered significant movements in the $7.5
trillion-a-day foreign exchange market. Wong noted that unexpected tariffs
levied on Europe and Japan have particularly affected dollar-yen and
euro-dollar currency pairs.
Currency
market swings have intensified as the deepening trade war erodes sentiment
around U.S. assets, making dollar selling one of the most popular macro trades
this month. The euro gained 1.3% against the dollar on Monday, while the
Japanese yen and Swiss franc also strengthened. Today (Tuesday), the EUR/USD
currency pair is still trading above 1.15.
Krishna Guha, vice chairman at Evercore ISI
“We’re
seeing a clear signal from the market that it doesn’t like even the idea that
the president might try to remove the Fed chair,” said Krishna Guha, vice
chairman at Evercore ISI. “There has been some loss of confidence in U.S.
economic policy making in recent weeks.”
Why Is the Dollar Falling?
The
dollar’s decline appears to stem from multiple factors:
- Political
uncertainty:
Trump’s criticism of Federal Reserve Chair Jerome Powell, including calling him
“Mr. Too Late” and “a major loser” on social media, has
rattled markets. The White House has reportedly explored whether they can
remove Powell from his position. - Trade
tensions: The April
2 rollout of global reciprocal tariffs sparked an initial round of dollar
selling. As trade conflicts escalate, investors are reassessing their exposure
to U.S. assets. - Capital
outflows: The
combination of rising long-term bond yields and a weaker dollar suggests global
investors are pulling capital out of the United States.
Andy Laperriere, head of U.S. policy at Piper Sandler
Andy
Laperriere, head of U.S. policy at Piper Sandler, warned investors against
dismissing Trump’s statements. “We are looking at a president who is
determined to turn Washington upside down. Investors who ignored Trump’s own
words proclaiming higher tariffs were ill-served by doing so,” Laperriere
wrote in a note to clients.
The effects of the dollar’s decline are widespread. Gold, for instance, has reached record highs, approaching $3,500 per ounce. Bitcoin is also rising rapidly, gradually emerging from several weeks of stagnation, and experts are once again making bold, bullish forecasts for the future price of BTC. 4o
How Low Can Dollar Go?
Based on my
technical analysis, the dollar may currently be set to continue the correction
that began in early 2025. The configuration of the 50- and 200-day EMAs, which
have formed a “death cross” on the daily chart, is a strong bearish signal last
observed in August of last year.
Technical analysis of the dollar index (DXY). Source: Tradingview.com
As shown,
the dollar, measured by the DXY index, broke through the support zone just
above the psychological level of 100 (last summer’s lows) and halted around the
98 level. This area coincides with the early 2022 lows that led to a rebound
toward multi-year highs later that year. However, if this level fails to hold,
bulls may lose their last remaining support on the dollar chart.
What’s
more, the long-term 61.8% Fibonacci retracement, measured from the January 2021
lows to the September 2022 highs, has been broken. Overall, I am convinced that
the dollar is unlikely to see bullish weeks or months ahead.
The
dollar’s weakness is also illustrated by its performance against major
currencies since the beginning of this month. It has lost “only” 2.7% against
the AUD, but over 9% against the sharply rising CHF, which—alongside the JPY—is
one of the FX market’s safe havens.
Dollar’s decline versus competing currencies. Source: Finviz.com
Spark Systems Expands to
Meet Demand
To
capitalize on the increased trading activity, Spark Systems is adding
approximately three currency sales personnel and ten technology developers to
its team. The company reports that its average daily trading volume has doubled
most years since 2017.
Spark
recently appointed Marek Lewandowski as head of sales for Europe, the Middle
East, Africa, and the Americas. Lewandowski previously worked at Mosaic Smart
Data and Singapore Exchange. The firm also hired Chaitanya Peddada, formerly of
Clearisk and SGX, as chief operating officer in November.
The U.S.
dollar’s slide to a three-year low is driving a boom in foreign exchange (FX)
trading activity, prompting Singapore-based FX platform Spark Systems to expand
its workforce as volatility in currency markets intensifies.
The dollar
index, which measures the greenback against a basket of major currencies, fell
as low as 97.92 yesterday (Monday), its lowest level since March 2022, amid
growing tensions between President Donald Trump and the Federal Reserve. The
index was down 1% at 98.38 in late trading.
Wong Joo Seng
Spark
Systems, backed by financial giants Citigroup and HSBC, plans to hire up to 13
new staff members over the coming year to handle increased trading volumes,
Chief Executive Officer Wong Joo Seng told Bloomberg in an interview.
“Our
average daily trading has jumped to about $10 billion from around $8 billion
late last year,” Wong said. “Trading at Spark is now at a
record.”
Market Volatility Drives
FX Trading Surge
The company
attributes much of the increased activity to policies implemented by the Trump
administration, which have triggered significant movements in the $7.5
trillion-a-day foreign exchange market. Wong noted that unexpected tariffs
levied on Europe and Japan have particularly affected dollar-yen and
euro-dollar currency pairs.
Currency
market swings have intensified as the deepening trade war erodes sentiment
around U.S. assets, making dollar selling one of the most popular macro trades
this month. The euro gained 1.3% against the dollar on Monday, while the
Japanese yen and Swiss franc also strengthened. Today (Tuesday), the EUR/USD
currency pair is still trading above 1.15.
Krishna Guha, vice chairman at Evercore ISI
“We’re
seeing a clear signal from the market that it doesn’t like even the idea that
the president might try to remove the Fed chair,” said Krishna Guha, vice
chairman at Evercore ISI. “There has been some loss of confidence in U.S.
economic policy making in recent weeks.”
Why Is the Dollar Falling?
The
dollar’s decline appears to stem from multiple factors:
- Political
uncertainty:
Trump’s criticism of Federal Reserve Chair Jerome Powell, including calling him
“Mr. Too Late” and “a major loser” on social media, has
rattled markets. The White House has reportedly explored whether they can
remove Powell from his position. - Trade
tensions: The April
2 rollout of global reciprocal tariffs sparked an initial round of dollar
selling. As trade conflicts escalate, investors are reassessing their exposure
to U.S. assets. - Capital
outflows: The
combination of rising long-term bond yields and a weaker dollar suggests global
investors are pulling capital out of the United States.
Andy Laperriere, head of U.S. policy at Piper Sandler
Andy
Laperriere, head of U.S. policy at Piper Sandler, warned investors against
dismissing Trump’s statements. “We are looking at a president who is
determined to turn Washington upside down. Investors who ignored Trump’s own
words proclaiming higher tariffs were ill-served by doing so,” Laperriere
wrote in a note to clients.
The effects of the dollar’s decline are widespread. Gold, for instance, has reached record highs, approaching $3,500 per ounce. Bitcoin is also rising rapidly, gradually emerging from several weeks of stagnation, and experts are once again making bold, bullish forecasts for the future price of BTC. 4o
How Low Can Dollar Go?
Based on my
technical analysis, the dollar may currently be set to continue the correction
that began in early 2025. The configuration of the 50- and 200-day EMAs, which
have formed a “death cross” on the daily chart, is a strong bearish signal last
observed in August of last year.
Technical analysis of the dollar index (DXY). Source: Tradingview.com
As shown,
the dollar, measured by the DXY index, broke through the support zone just
above the psychological level of 100 (last summer’s lows) and halted around the
98 level. This area coincides with the early 2022 lows that led to a rebound
toward multi-year highs later that year. However, if this level fails to hold,
bulls may lose their last remaining support on the dollar chart.
What’s
more, the long-term 61.8% Fibonacci retracement, measured from the January 2021
lows to the September 2022 highs, has been broken. Overall, I am convinced that
the dollar is unlikely to see bullish weeks or months ahead.
The
dollar’s weakness is also illustrated by its performance against major
currencies since the beginning of this month. It has lost “only” 2.7% against
the AUD, but over 9% against the sharply rising CHF, which—alongside the JPY—is
one of the FX market’s safe havens.
Dollar’s decline versus competing currencies. Source: Finviz.com
Spark Systems Expands to
Meet Demand
To
capitalize on the increased trading activity, Spark Systems is adding
approximately three currency sales personnel and ten technology developers to
its team. The company reports that its average daily trading volume has doubled
most years since 2017.
Spark
recently appointed Marek Lewandowski as head of sales for Europe, the Middle
East, Africa, and the Americas. Lewandowski previously worked at Mosaic Smart
Data and Singapore Exchange. The firm also hired Chaitanya Peddada, formerly of
Clearisk and SGX, as chief operating officer in November.
