FX liquidity ‘worse than Covid’ amid tariff volatility, dealers say

- By Joe Parsons
- @Joe_Parsons416
- 10 Apr 2025

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Liquidity conditions in the global spot foreign exchange markets have been strained since US President Donald Trump announced his so-called reciprocal tariffs last week and was getting even worse before yesterday’s decision to temporarily pause the duties.

FX dealers say liquidity collapsed despite volumes spiking across both algorithmic and principal spot trading desks.

“Under typical conditions if you swept all EUR/USD order books, you’d be able to do maybe $70–80 million in one go if you really

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