EUR/USD Nears 1.1700 as Fed Independence Concerns Weigh on US Dollar

EUR/USD Rally Continues, Trading Near 1.1700 for the First Time Since 2021

The EUR/USD pair remains firmly bid, trading around 1.1700 in Friday’s early Asian session—levels last seen in September 2021. The pair has now logged multiple sessions of gains since the rally began on June 18, driven primarily by weakness in the US Dollar (USD).

Fed Autonomy Doubts Weigh on USD Sentiment

The pressure on the Greenback deepened after US President Donald Trump sharply criticized Fed Chair Jerome Powell, labeling him “terrible” during a NATO summit sideline event in The Hague. Trump also signaled plans to name a successor early, suggesting he has “three or four” candidates in mind.

Such moves have triggered market fears over the Federal Reserve's independence, which is essential for maintaining investor confidence and the credibility of US monetary policy.

“Political tides and shadow chairs have nothing to do with FOMC policy decisions,”
— Chicago Fed President Austan Goolsbee, CNBC

Goolsbee emphasized that monetary decisions remain data-driven and independent, countering suggestions of political influence.

Macron's Warning Adds to Dollar Pressure

In another development weighing on the USD, French President Emmanuel Macron issued a sharp warning: If the 10% US tariff on EU goods remains, Europe will retaliate with a mirror tariff on US companies. This statement added geopolitical tension to the USD outlook and bolstered Euro strength.

Explore related coverage:
🔗 Macron Threatens US Tariff Retaliation
🔗 Fed Policy Tracker: Independence at Risk?

Key Technical Levels to Watch

• Resistance: 1.1745 (2025 high), 1.1800 (psychological)
• Support: 1.1650, 1.1600

The bullish trend remains intact as long as EUR/USD holds above 1.1650. Further gains may follow if US economic data disappoints or Fed credibility erodes further.