EUR/USD remains bid, US Dollar dives on Fed independence fears

EUR/USD resumes its recovery and approaches the 1.1700 area.
Eurozone Sentix data has shown a significant improvement in investors’ confidence
Concerns about the Fed’s independence are hammering confidence in the US Dollar.

EUR/USD is trading near 1.1690 at the time of writing, 0.4% higher on daily charts after bouncing from one-month lows at the 1.1620 area earlier on the day. An upbeat Eurozone Sentix Consumer Sentiment Index and a weak US Dollar (USD) amid renewed attacks from the US government against the Federal Reserve Chairman Jerome Powell have been underpinning demand for the Euro (EUR) on Monday.

The New York Times has reported on Sunday that Powell is under criminal investigation for his testimony before the Senate Committee regarding renovations to a Federal Reserve building. Powell has responded with a video, stating that the investigation is “unprecedented” and framing it as a series of threats aimed at bending the central bank’s arm into lowering interest rates.

Apart from that, violence has escalated in Iran, where the regime is reported to have killed hundreds of protesters this weekend, with the Threat of a US intervention looming.

The economic calendar is thin on Monday, but in this context, the speech from Atlanta Fed President Raphael Bostic will be observed with particular interest. Later this week, the release of the US Consumer Price Index (CPI) data, due on Tuesday, and a slew of speeches from Fed Officials might shed more light on the Fed’s interest rate-cut path.