The U.S. dollar remains under pressure as it hovers close to a five-month low against major currencies, largely due to erratic trade policies from President Donald Trump and a series of soft economic data points. Meanwhile, the euro is approaching a five-month peak following Germany’s significant fiscal deal aimed at boosting defense spending and economic growth.
Goldman Sachs analysts reported significant market shifts, noting a decline in U.S. asset ratings triggered by tariff instability and policy uncertainty, alongside a positive fiscal re-rating in Germany. These developments challenge the prevalent narrative of U.S. market exceptionalism.
Elsewhere, the Chinese yuan has strengthened, driven by strategic plans from China’s State Council to enhance domestic consumption. As global economic concerns persist, the Federal Reserve and the Bank of Japan are expected to maintain steady interest rates in upcoming meetings.
(With inputs from agencies.)
