The EUR/USD exchange rate surged to a three-year high above 1.1550 last week before a slight correction to around 1.1350. This movement has drawn attention as President Trump backed off from threats to oust Fed Chair Powell. Scotiabank believes this indicates a decisive upward shift for EUR/USD, forecasting potential gains to reach 1.20 by the end of 2026. Market participants should closely monitor economic indicators that could affect this trajectory in the coming months.