Forex Today: Trump Slams Powell, U.S. Dollar Recovers From Four-Year Lows

By Agustin Wazne of FX Street

Thursday, January 29, 2026 2:31 PM EST

10 and one 10 us dollar bill

Image Source: Unsplash

Here is what you need to know on Friday, January 30:

Financial markets were choppy on Thursday, with significant volatility during US trading hours. In the absence of other news, the focus was on United States (US) President Donald Trump, who said on Truth Social that the Federal Reserve (Fed) should substantially lower interest rates: “now! We should be paying lower interest rates than any other country in the world.” Trump took another jab at Fed’s Chairman Jerome Powell, calling him “too late Powell” and claiming he is hurting the US and its national security.

The Fed on Wednesday kept the fed fund rates unchanged, as widely expected, but Powell struck a less dovish tone, noting that “the US economy expanded at a solid pace last year and is coming into 2026 on a firm footing.” Powell added that job gains remain modest, unemployment is stabilizing, and inflation remains somewhat elevated.

Wall Street's slumped due to a sell-off in the tech sector, partially explaining the recent market movements, but not completely. Microsoft Corp MSFT. shares fell to their lowest in six-years after the company reported record spending in the last three months of 2025, spurring concerns it will take longer than expected for the company’s AI investments to pay off.

DXY: The US Dollar Index (DXY) is trading near the 96.20 level, recovering from four-year lows.

AUD/USD is trading near the 0.7020 price zone, staying near three-year highs as the Australian Dollar (AUD) rocketed, with Gold reaching fresh all-time highs.

USD/JPY is trading near the 153.00 price region after the Bank of Japan (BoJ)’s committee shared the scenario of rising inflationary pressures, a weak Japanese Yen (JPY), and wage growth, which paves the path for further monetary tightening.

EUR/USD is trading near 1.1950, unchanged on a daily basis after posting a four-year high two days ago.

GBP/USD is trading near the 1.3790 price zone, as the Great British Pound (GBP) keeps itself above a weak USD.

Gold clings to its corrective pullback, trading near the $5,330 price zone after hitting a record high of $5,598 earlier in the Asian session.

What's next in the docket:

Flash Germany Gross Domestic Product (GDP).
Flash Eurozone GDP.
Flash German CPI.
US Producer Price Index (PPI).

More By This Author:

EUR/USD Remains Steady Near Four-Year Highs Despite Fed Hawkishness
Gold Extends Record-Breaking Streak As Safe-Haven Demand Persists
AUD/USD Trades Flat Near 0.7000 As Markets Await Fed Decision

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