FX.co ★ Euro Rebounds as Dollar Weakens Amid Fed Concerns

The euro experienced an uptick, approaching $1.17, after recovering from a one-month low observed last week. This movement occurred as investors reduced their dollar holdings due to worries about the Federal Reserve's autonomy. Federal Reserve Chair Jerome Powell noted on Sunday that the Justice Department had issued a subpoena to the Fed on Friday regarding cost overruns at its headquarters. Powell described the investigation as a pretext for President Trump's ongoing efforts to influence the central bank's decision-making on interest rate cuts. Market participants are also looking forward to crucial economic data this week, including Germany's 2025 GDP figures and US consumer price inflation statistics, to glean further insights into future monetary policy. In the previous week, lower-than-anticipated consumer price index data from the Eurozone dampened expectations of an interest rate increase by the European Central Bank this year.