In the wake of Donald Trump's tariffs, the currency trading landscape is experiencing renewed activity, prompting financial institutions such as Optiver, Wells Fargo, and Citigroup to hire additional foreign exchange (FX) traders. The $7.5 trillion-a-day currency market has seen increased volatility, leading banks and hedge funds to rebuild their long-neglected FX teams. However, as traders initially loaded up on stocks and went long on the dollar, recent reports indicate that the so-called 'Trump trades' are beginning to misfire, with the dollar weakening. This shift raises questions about the sustainability of the trading strategies that were expected to benefit from Trump's economic policies.
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