Dollar Surges as U.S. and EU Seal Trade Pact
The dollar rose against major currencies following a U.S.-EU trade pact, alleviating fears of a global trade war. Investor attention turns to U.S. and Japanese central bank meetings, with focus on possible rate changes. Upcoming corporate earnings may further impact currency market dynamics.
The U.S. dollar strengthened against leading currencies on Monday after the United States and the European Union forged a new trade framework, a vital move to defuse escalating trade tensions globally. Investors eagerly await central bank meetings in the U.S. and Japan this week.
There is heightened anticipation around the talks in Stockholm as U.S. and Chinese economic delegates will work to maintain a truce that averts severe tariff hikes. The euro experienced a significant drop, marking its biggest daily decline in 10 weeks, as investors recalibrated their assessments of global trade tensions and their impact on the dollar.
Market focus has now shifted towards key corporate earnings and the forthcoming Fed and Bank of Japan meetings. Both central banks are anticipated to hold rates steady, though further comments may provide insights into future rate directions. Meanwhile, tech giants like Apple and Amazon are set to release quarterly earnings that could sway investor sentiment towards U.S. currency assets.
(With inputs from agencies.)
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