EUR/USD gains 0.9% as Fed turmoil undermines dollar strength

EUR/USD surged 0.9% (95 pips) to 1.0580 as the dollar faced broad selling pressure amid threats to Federal Reserve independence. The euro benefited from safe-haven flows with European currencies outperforming, including CHF gaining 1.2% and SEK advancing 0.8% against the greenback. Markets are repricing Fed policy expectations, with the terminal rate now seen 25bps lower at 4.25% by end-2026. ECB officials maintained their gradual easing stance, supporting relative euro strength. Technical indicators turned bullish with EUR/USD breaking above the 1.0550 resistance, opening path toward 1.0620 (200-day MA). Support has formed at 1.0500. Continued Fed uncertainty could push the pair toward 1.0700, while any resolution might see profit-taking below 1.0500.