The U.S. dollar enters a volatile week as President Donald Trump intensifies calls for deeper monetary easing. In a weekend interview, Trump urged the Federal Reserve to move decisively at its upcoming policy meeting, suggesting that a small reduction would not be enough.
“I think it’s time to act big,” Trump told reporters on Sunday. “The time has come for the next step.”
Markets are already pricing in a 25-basis-point cut, but speculation is building that the Fed could deliver a bolder move. Futures markets reflect growing confidence in easier policy, weighing on the dollar across major pairs. Still, the central bank may try to signal independence, proceeding more cautiously than the White House desires.
The tone of the Fed’s post-meeting guidance will be critical. A clear signal of readiness to continue easing could accelerate the dollar’s decline, while suggesting a one-off cut may provide temporary support.
The expected September 17 cut comes against a backdrop of sluggish job growth, persistent inflation, and heightened political pressure. Trump has been highly vocal, frequently criticizing Fed Chair Jerome Powell and even demanding his resignation. Weak labour data have raised fears of a deeper slowdown, while inflation remains above target a mix that leaves officials wary of cutting too aggressively.
Meanwhile, Trump’s term-long friction with the Fed has reached new heights. He has argued that high rates are holding back U.S. growth and global competitiveness, while Powell has repeatedly defended the Fed’s independence and data-driven approach. Looking ahead, Trump has already floated potential successors for Powell when his term expires in May 2026, naming Kevin Hassett, Christopher Waller, and Kevin Warsh as contenders.
Technical Outlook
EUR/USD
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Bulls must secure 1.1745 to trigger a test of 1.1780, with potential to extend toward 1.1813 and ultimately 1.1866.
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On the downside, strong support is expected around 1.1700. If broken, attention shifts to 1.1665 and 1.1630 for possible long setups.
GBP/USD
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Buyers need to overcome resistance at 1.3590 to aim for 1.3615 and ultimately 1.3645.
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A drop below 1.3525 would signal renewed bearish control, exposing 1.3495 and 1.3458 as downside targets.
