Dollar stays on the backfoot amid unease over Fed independence

The dollar continues to decline at the beginning of the week, primarily due to unease over the independence of the Federal Reserve as an unprecedented probe into Chair Powell has been initiated. With Powell's term ending in May and a transition to a new chair approaching, market confidence is wavering amidst increasing political pressures. Dollar losses are evident across major currencies, with USD/CHF down 0.5% to 0.7966, while EUR/USD has rebounded 0.3% to 1.1677, nudging back above its 100-hour moving average. However, maintaining levels below this average may sustain bearish bias. Furthermore, precious metals are experiencing gains, with gold up 1.7% to $4,585 and silver rising 5% to $84.11, reflecting the dollar's diminished credibility.