Amid global economic instability and escalating tariff tensions, the EUR/USD and GBP/USD currency pairs are showing strong growth. Following statements by Donald Trump regarding the potential dismissal of Federal Reserve Chair Jerome Powell, pressure on the US dollar is intensifying. This is creating favourable conditions for the strengthening of the euro, the Japanese yen, and the British pound.

President Trump has repeatedly criticised Jerome Powell’s approach to monetary policy, accusing him of excessive caution and a lack of flexibility in cutting interest rates. According to the White House administration, the Fed’s current stance hinders economic growth and weakens the dollar’s position in global markets. These remarks are causing concern among investors and increasing volatility in currency markets, supporting the rise of other currencies against the dollar.

GBP/USD

At the start of the week, GBP/USD buyers managed to push the pair to new yearly highs, testing the key resistance level at 1.3400. The price briefly traded above 1.3400, but a sharp pullback from 1.3420 allowed sellers to form a bearish “dark cloud cover” pattern. Technical analysis of GBP/USD suggests a potential downward correction following the recent rapid rise. Should the pair consolidate below 1.3200, the decline could extend towards the 1.3160–1.3100 range.

Key events that could influence GBP/USD in the upcoming trading sessions:

• Today at 13:30 (GMT+2): Speech by BoE Monetary Policy Committee member Pill
• Today at 14:00 (GMT+2): Bank of England Quarterly Bulletin
• Today at 16:30 (GMT+2): Speech by Federal Reserve's Christopher Waller
• Today at 16:45 (GMT+2): Manufacturing PMI (Apr)
• Today at 16:45 (GMT+2): Services PMI (Apr)

EUR/USD

On Monday, EUR/USD traded near four-year highs around the 1.1600 level. This sharp rise was followed by an equally strong pullback after the formation of a reversal pattern on the daily timeframe.
Technical analysis of EUR/USD indicates a potential downward move, with a possible test of the 1.1300–1.1260 area. However, a confident break above 1.1420 could spark a new bullish impulse towards recent highs.

The following events could affect EUR/USD pricing in the coming hours:

• Today at 10:30 (GMT+2): Germany Composite PMI
• Today at 11:00 (GMT+2): S&P Global Manufacturing PMI
• Today at 12:30 (GMT+2): German 10-Year Bond Auction
• Today at 13:00 (GMT+2): Bundesbank Monthly Report

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