The EUR/USD pair advances to approximately 1.1965 in the early Asian session on Friday. Unpredictable US trade policy and concerns regarding the independence of the Federal Reserve exert pressure on the US Dollar in comparison to the Euro. EUR/USD shows resilience near 1.1965 during the early hours of Friday’s Asian session. Uncertainties surrounding US trade policy and the Federal Reserve’s autonomy persist as significant factors impacting the US Dollar. Trump indicated that he plans to reveal his nominee for the Federal Reserve chair next week.
The Greenback encountered selling pressure earlier this week following US President Donald Trump’s apparent indifference to the currency’s weakness. However, it regained some lost ground after Treasury Secretary Scott Bessent stated the following day that Washington maintains a strong-dollar policy. Concerns regarding the volatility of US policies may weaken the Greenback and provide support for the major pair in the short term. “Concerns that investors have about trade and geopolitical policies that have been wheeled out in the U.S. at the moment have been potentially negative for the dollar,” stated Shaun Osborne.
Trump stated that he plans to reveal his nominee to chair the Fed “next week” and emphasized his belief that the new leader of the central bank will reduce interest rates. This headline brings to light concerns regarding the autonomy of the US central bank, potentially impacting the downward trajectory of the USD.
Market participants are closely monitoring the upcoming preliminary reading of Gross Domestic Product for the fourth quarter from the Eurozone and Germany, set to be released on Friday. The flash report on the German Consumer Price Index is scheduled for release later today. However, if the reports indicate outcomes that fall short of expectations, this could lead to a decline in the shared currency relative to the USD. The Producer Price Index report and the speech by Fed’s Alberto Musalem will attract significant attention on the US docket.