Fed Leadership Transition and EUR/USD, GBP/USD Technical Outlook

Federal Reserve Leadership Transition Updates

US President Donald Trump recently addressed the transition of leadership at the Federal Reserve, stating he is indifferent to Jerome Powell’s decision to remain on the Board of Governors following the expiration of his term as Chair on May 15. The Senate Banking Committee has approved the nomination of Kevin Warsh, whose confirmation is anticipated before Powell’s departure from the chair position.

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Powell’s intent to continue serving as a governor remains a point of contention within the administration. Treasury official Scott Bessent has publicly criticized this move, citing a breach of institutional norms and expressing concern that the lack of a cooling-off period could impact the central bank's perceived independence. Despite this political discourse, broader financial markets have remained largely unaffected.

EUR/USD Technical Analysis

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The EUR/USD pair is currently focused on the 1.1735 resistance level. A successful breach of this mark is required to test 1.1750, with further potential for an extension toward 1.1775 and 1.1790. However, significant upside momentum remains contingent on institutional buyer participation.

On the downside, support is identified at 1.1710, where buying interest is expected to materialize. Should this level fail to hold, market participants may look to open long positions near the 1.1685 low or the subsequent support at 1.1655.

GBP/USD Technical Analysis

For GBP/USD, buyers are currently targeting the immediate resistance at 1.3620. Clearing this hurdle is necessary to reach 1.3650, while the 1.3680 area represents a more significant upside target. Market participants note that sustained momentum above these levels faces notable resistance.

Conversely, bearish pressure is centered at the 1.3570 support level. A breakdown below this threshold would likely weaken the bullish outlook, shifting the focus toward the 1.3550 low and potentially testing the 1.3525 support level in the near term.

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