EUR/USD gains momentum to around 1.1690 in Thursday’s Asian session.
WSJ reported Trump is considering an early pick for Fed chair.
Investors brace for the final US Q1 GDP Growth Rate.
The EUR/USD pair extends its upside to near 1.1690 during the Asian trading hours on Thursday. The US Dollar (USD) weakens against the Euro (EUR) as investors are concerned about the future independence of the US Federal Reserve (Fed). The final US Q1 Gross Domestic Product (GDP) Growth Rate will be in the spotlight later on Thursday.
US President Donald Trump on Wednesday said on Wednesday that he is considering three or four potential replacements for Fed Chair Jerome Powell. According to the Wall Street Journal, Trump might consider former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent. Other candidates include former World Bank President David Malpass and Fed Governor Christopher Waller.
This raises the question about the potential erosion of Fed independence and potentially weakened credibility, which undermine the Greenback and create a tailwind for the major pair.
Across the pond, the European Central Bank (ECB) policymakers have become concerned over the economic outlook due to the tariff policy announced by Trump and geopolitical risks. Earlier this week, ECB policymaker Francois Villeroy de Galhau said that further rate cuts are still possible despite present conditions. Dovish remarks from the ECB policymakers could weigh on the shared currency in the near term.
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