- The EUR/USD is currently hovering around 1.1570, with investors eagerly anticipating the Fed Chairman’s announcement.
- President Trump has confirmed he will soon introduce tariffs targeting semiconductors and chips.
- Investors are also waiting for the retail sales data for the eurozone for June.
The EUR/USD pair is expected to remain relatively stable at around 1.1570 during the Asian trading session on Wednesday. The major currency pairs have shown volatility as the US dollar (USD) fluctuates. This is likely due to investors waiting for news from the Federal Reserve, especially in light of the recent resignation of the chairman and the search for a successor to Gov. Adriana Coogler.
As for the US Dollar Index (DXY), which measures the dollar’s strength against six major currencies, it’s trading within a narrow range of approximately 98.80 at this moment.
On Tuesday, President Trump shared his intention to appoint replacements for the Fed and Coogler by the end of the week. He confirmed this not just with one but four different speakers, among them White House economic advisor Kevin Hassett and former Fed Governor Kevin Wahsh.
“We’re narrowing it down to four candidates for the Fed chair position. There are two named Kevin and two others,” Trump stated to the press.
During an interview with CNBC, Trump clarified that Treasury Secretary Scott Bessent is not in the running for the Fed chair position.
Meanwhile, the tariff situation is evolving as Trump announced he’d be revealing tariffs on “semiconductors, chips, and pharmaceuticals” within the next week or so.
Investors in the eurozone are keenly awaiting the retail sales data, which serves as a key indicator of consumer spending. Set to be released at 09:00 GMT for June, monthly retail sales are projected to have increased by 0.4% following a 0.7% drop in May. Year-on-year, consumer spending metrics are expected to rise to 2.6%, compared to 1.8% recorded last month.
