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.

Dollar's Decline Fuels Surge in FX Trading Volumes, Spark Systems Expands Team

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.

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.

"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, 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.

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.

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.