EUR/USD: Euro Hits $1.17 as Trump Touts Powell Replacement Way Earlier Than Expected

New Fed chief, potentially announced way ahead of time, could influence traders and investors (as it just did). Here’s what you need to know.

🎯 Euro Runs Over Dollar to Hit $1.17

• The EURUSD surged to its highest level in nearly four years early Thursday after President Donald Trump said he may announce a replacement for Fed chair Jerome Powell well ahead of schedule — a move that sent the US dollar reeling and traders scrambling to reprice the Fed's forward path.
• The euro jumped 0.7% to $1.1716, marking its sixth straight day of gains in one of its strongest bullish streaks in recent past.
• Thursday’s level was last seen in November 2021 and lines up with a double top pattern on long-term charts — a technical formation that could either trigger a breakout or mark near-term exhaustion, depending on follow-through.
• The catalyst wasn’t anywhere in Europe but in Washington: Trump’s signal of an early Fed leadership change rattled the dollar and buoyed risk sentiment in the old continent.

🧐 Trump to Break Tradition — And the Dollar’s Back?

• In a not-so-surprise comment to reporters (Trump’s had a beef with Powell for a while), the US President suggested he could name a new Fed chair way ahead of time — this summer. It’s far earlier than the typical 3–4 months before a transition. Powell’s term ends May 2026, making this chatter extra early — and highly market-moving.
• Traders read the move as a potential shift in the Fed's policy trajectory, especially if Trump taps someone more aligned with his low-rates preference. The prospects of a pro-rate-cut Fed boss toppled the dollar, which stands to yield lower returns and become less attractive in a low-rate environment.
• Among the names reportedly under consideration: Kevin Warsh, Kevin Hassett, Scott Bessent, David Malpass, and Christopher Waller — all of whom have differing views on interest rate strategy, with some seen as more dovish or market-friendly than Powell.

🤔 Why It Matters

• While Jay Powell remains at the helm — Trump has no legal power to fire him — the idea of a “chair-in-waiting” could start swaying investor expectations well in advance of May 2026. And that’s what likely happened with the dollar.
• The US dollar index fell for the fourth day today, now hovering below critical long-term support at 97.60. In other words, the bear camp might be stacking up the shorts in an effort to try and bring it further down.
• The early Fed chatter came just ahead of key data releases, including Thursday’s US GDP data (after the preliminary report showed a 0.2% contraction) and Friday’s PCE inflation figure — events that could now be interpreted through a very different political lens.