The U.S. dollar may face significant turbulence this week. President Donald Trump recently stated in an interview that he expects the Federal Reserve to deliver a larger rate cut this week. Pressure from the White House comes ahead of a pivotal meeting where central bank officials are expected to ease policy for the first time in nine months.

"I think it's time to act big," Trump told reporters on Sunday. "The time has come for the next step."

Beyond Trump's remarks, markets have already priced in the likelihood of a 25-basis-point cut, while some analysts do not rule out a more aggressive move. Federal funds futures indicate growing confidence in easing, which is putting downward pressure on the dollar against other major currencies. However, the Fed is likely to emphasize its independence from political pressure and may act more cautiously than the president desires.

The dollar's reaction will also depend on the accompanying comments following the rate decision. If the Fed sends a clear signal of readiness for further easing, the dollar could decline more quickly. On the other hand, if the central bank stresses that the current rate cut is a one-off measure and not the start of a cycle, the dollar may receive temporary support.

The Fed is expected to cut rates on September 17, in the context of a slowing labor market, persistent inflation, and Trump's unprecedented push to lower borrowing costs. The consensus forecast among economists is for a 25-basis-point reduction.

It should be noted that Trump has been pressuring Fed Chair Jerome Powell for months to cut rates and has repeatedly called for his resignation. Recent weak economic reports have fueled concerns that the labor market could slide into an even deeper slowdown, threatening consumer spending and economic growth. At the same time, inflation remains above the Fed's 2% target and could rise further if tariff policies increase costs, prompting some officials to worry about acting too hastily.

Tensions between the White House and the Fed have reached a peak amid slowing economic growth and growing concerns over trade wars. Trump has repeatedly claimed that high interest rates restrain growth and that rate cuts are necessary for the U.S. to compete globally. Powell has consistently stressed the Fed's independence, stating that rate decisions are based on economic data, not political pressure. He has also noted that cutting rates while the labor market is strong and unemployment low could fuel inflation and destabilize the economy. In this context, markets remain highly sensitive to any hints of a possible Fed policy shift.

It should also be noted that Powell's term expires in May 2026, and Trump is now considering his successor. The president has publicly named White House economic adviser Kevin Hassett, Fed Governor Christopher Waller, and former Fed Governor Kevin Warsh as the three main candidates.

Technical outlook for EUR/USD: buyers now need to secure the 1.1745 level. Only then will a test of 1.1780 be possible. From there, the pair could reach 1.1813, though doing so without support from large players will be difficult. The ultimate target is 1.1866. In the event of a decline, I expect strong buying interest around 1.1700. If none emerges, it would be better to wait for a retest of the 1.1665 low or consider long positions from 1.1630.

Technical outlook for GBP/USD: pound buyers need to take the nearest resistance at 1.3590. Only then will a move toward 1.3615 be possible, though breaking higher will be difficult. The ultimate target is 1.3645. In case of a decline, bears will attempt to regain control at 1.3525. If successful, a breakout of this range would deal a serious blow to bulls and push GBP/USD toward 1.3495, with the potential to extend to 1.3458.