Greenback goes up in smoke as hassett lights the fuse

The dollar didn’t just slip in a sleepy, illiquid Asian session — it detonated. With half the globe still on Easter break and liquidity thinner than rice paper, all it took was one spark — and the entire FX board caught fire. That spark? NEC Director Kevin Hassett throwing Powell back under the bus, confirming that Trump’s still exploring how to remove the Fed Chair, while accusing the central bank of playing partisan politics. Translation for markets? The Fed’s independence just got yanked back into the headlines — and traders wasted no time taking the other side.

The move was swift and brutal. Hedge funds were flooding the Asia efx tape, selling the dollar against anything that wasn’t nailed down. EURUSD exploded to 3-year highs — never mind the fact that Europe’s still economically underwater. The yen? Ripped through 141, posting an 11% rally from the January lows. Meanwhile, gold didn’t just wake up — it went thermonuclear, blowing past $3,370 like last week’s dip was a bad dream.

This wasn’t data-driven — it was pure headline reflex, triggered by the smell of political instability bleeding into monetary credibility. Powell may be staying quiet, but the market isn’t. If the Fed won’t cut, Trump’s strategy is clear: trash the markets until financial conditions ease anyway. That’s not forward guidance — that’s a street brawl between the White House and the Eccles Building.

And here’s where things get interesting: Bitcoin joined the rebellion. Usually, a collapsing dollar signals chaos for crypto — risk-off, carry unwinds, beta selloffs. But this time? BTC surged over $2,000, punching through $87K with its biggest one-day move since "Liberation Day." The BTC-DXY correlation? Snapped like a dry twig. This wasn’t just a breakout — it was a rotation. Gold is screaming policy protest, and now Bitcoin is tagging in as the next anti-fiat weapon.

Because let’s be real — if the dollar keeps disintegrating, the BOJ and ECB won’t just sit there holding the bag. A runaway yen or euro would be economic suicide, and everyone knows it. The moment they retaliate — likely with rate cuts and the resurrection of QE — the next global liquidity flood begins.