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The EUR/USD pair gains ground to near 1.1965 during the early Asian session on Friday. Unpredictable US trade policy and questions over the independence of the Federal Reserve (Fed) weigh on the US Dollar (USD) against the Euro (EUR).  The Greenback faced some selling pressure earlier this week after US President Donald Trump seemed to shrug off the currency’s weakness, though it recovered some lost ground after Treasury Secretary Scott Bessent said a day later that Washington has a strong-dollar policy. Concerns over US policy volatility could undermine the Greenback and create a tailwind for the major pair in the near 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,” said Shaun Osborne, chief currency strategist at Scotiabank. Trump said that he would announce his nominee to chair the Fed “next week” and reiterated his expectation that the central bank’s new leader will lower interest rates. This headline raises worries about the independence of the US central bank and might contribute to the USD’s downside.  Traders await the preliminary reading of Gross Domestic Product (GDP) for the fourth quarter (Q4) from the Eurozone and Germany, which will be published on Friday. Also, the flash German Consumer Price Index (CPI) report is due later in the day. However, if the reports show weaker-than-expected outcomes, this could drag the shared currency lower against the USD. On the US docket, the Producer Price Index (PPI) report and Fed’s Alberto Musalem speech will be closely watched.  Euro FAQs The Euro is the currency for the 20 European Union countries that belong to the Eurozone. It is the second most heavily traded currency in the world behind the US Dollar. In 2022, it accounted for 31% of all…

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Filed under: News - @ January 30, 2026 12:24 am