"Powell's firing" worries deepen as the US dollar index falls below the 99 level for the first time in three years.

As President Trump continues to criticize and hint at the possibility of firing Federal Reserve Chairman Powell, the selling pressure on the US dollar strengthened on Monday. Due to investors weighing the risk of Powell's dismissal and how it could further erode confidence in US assets, the dollar weakened against almost all major currencies. The dollar index fell in the short term, now trading at 98.66, breaking below 99 for the first time in three years. The Euro and Swiss Franc were among the currencies with the biggest gains, with the former rising to its highest level in three years. US stock futures edged lower, while the 10-year US Treasury yield rose, highlighting ongoing tension towards the world's largest economy. US economic prospects remain bleak amidst the global trade war. The possible firing of Powell could weaken investor confidence, as the independence of the Federal Reserve is seen as a key reason for investing in US assets. However, Trump may to some extent welcome the weakness of the dollar, as he has previously stated that he would welcome a cheaper currency to make US products more competitive. Win Thin, Global Head of Currency Strategy at Brown Brothers Harriman & Co., wrote in a report, "We believe the weakness in the dollar will continue. Attacks on the independence of the Federal Reserve are intensifying. Recognizing that this research is being conducted should be treated very seriously and negatively."