EUR/USD surges above 1.1710 on Trump-Powell tension reports

EUR/USD jumped sharply to 1.1715, gaining 0.45% (52 pips) following a Wall Street Journal report suggesting former President Trump is seeking ways to undermine Federal Reserve Chair Jerome Powell's authority. The article sparked immediate dollar selling across the board as traders priced in potential political interference with Fed independence, a development that could compromise the central bank's credibility and weaken the dollar's reserve currency status. The news compounds existing dollar weakness from dovish Fed expectations and adds a new layer of political risk to USD positions. EUR/USD broke through resistance at 1.1700 with strong momentum, targeting the next resistance zone at 1.1750. Support has formed at 1.1680 following the breakout. Market participants are particularly concerned about the implications for Fed policy continuity and the dollar's safe-haven appeal if political pressures intensify. The development suggests heightened volatility ahead for dollar pairs as political risk premiums increase.