Euro Rebounds as Dollar Weakens Amid Fed Concerns

2026-01-12 08:20 By Joana Ferreira 1 min. read

The euro climbed toward $1.17, recovering from a one-month low hit last week, as investors sold the dollar amid concerns over the Fed’s independence.

Fed Chair Jerome Powell said on Sunday that the Justice Department had subpoenaed the Fed on Friday over headquarters cost overruns, calling the probe a pretext for President Trump’s push to pressure the central bank to cut rates.

Investors also awaited key data this week, including Germany’s 2025 GDP figures and US consumer price inflation, for further guidance on the monetary policy outlook.

Last week, weaker-than-expected Eurozone CPI data reduced bets on an interest rate hike by the ECB this year.



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